California's Billionaire Tax Will Fail and Threaten Ordinary Savers' Retirement Accounts
Source: https://www.facebook.com/americanspectator/. "One Ballot Measure Extends California’s Taxing Power. Another Limits It. Stay Tuned. | The American Spectator | USA News and Politics." May 28, 2026. spectator.org
The Gist
California wants to tax billionaires' wealth, but this will backfire because the rich will just leave the state. When the tax doesn't raise enough money, politicians will go after regular people's retirement savings next, just like they already do with health savings accounts.
Conclusion
Californians should reject the Billionaire Tax Act and support the Retirement and Personal Savings Protection Act to prevent the state from eventually taxing ordinary citizens' retirement savings
Premises
- The Billionaire Tax Act will likely generate no net revenue because billionaires are already leaving California, reducing the tax base by at least $25 billion
- The tax creates permanent legal infrastructure allowing future wealth taxes at any rate and threshold, despite being framed as 'onetime'
- California has a track record of fiscal irresponsibility, with spending growing 70% since 2019 and creating a $50 billion deficit
- When the billionaire tax fails to deliver promised revenue, the state will target ordinary citizens' retirement accounts as the next available asset pool
- California already taxes federally-protected health savings accounts, demonstrating willingness to target ordinary savers' protected accounts
- Wealth taxes violate fairness by double-taxing after-tax savings and create instability by taxing asset values rather than income flows
Assumptions
- Billionaires will continue leaving California at current or accelerated rates
- Politicians will expand tax scope when initial revenue targets aren't met
- California's spending patterns will continue unchanged
- Federal protections for retirement accounts are insufficient against state-level taxation
- The Retirement and Personal Savings Protection Act would effectively prevent future expansion of wealth taxes