California's Billionaire Tax Is a Giant Bait-and-Switch

When the income tax was first introduced in 1913, it was explicitly designed to apply to a small fraction of high-income earners and not the general population. The top rate, seven percent, applied to roughly two to three percent of all American households. Most Americans paid no income tax at all.

But, as we all know, that radically changed over time and now most of us have our income taxes taken directly from our paychecks.

It was the ultimate bait-and-switch, and now California Democrats have looked at what the federal government did and said, "Hold our beer."

Turns out the so-called "Billionaire Tax," which would impose a five percent tax on billionaires' assets or net worth, and not just their income, has a backdoor provision that will allow Democrats to tax everyone without an additional vote on the matter.

On page twenty-six of “The Billionaire Tax” proposal in California, it explains how the state legislature can convert from a Billionaire Tax to an Everyone Tax without voter approval.

They can also adjust the tax to be a yearly tax, not just one time…again, without your… https://t.co/NhoFQZqWSV
— Chamath Palihapitiya (@chamath) April 25, 2026

And here's how that process would reportedly work:

The Billionaire Tax is actually an Everyone Tax.

The Billionaire Tax is a new tax proposal written by four professors who don't believe in the American dream. Some of them aren’t even American…go figure.

Despite its name, it applies to every California resident who currently…
— Chamath Palihapitiya (@chamath) April 25, 2026

Under "Legislative Authority," the bill reportedly says, "The Legislature may amend the 2026 Billionaire Tax Act, by statute passed in each house of the Legislature by roll call vote entered in the journal, two-thirds of the membership concurring, if the state is consistent with and furthers the purposes of the 2026 Billionaire Tax Act."

This is the federal income tax play all over again.

It started in 1913 as a “class tax” on the rich, hitting less than 1% of the population with a 1% rate above $3,000.

It expanded during WWII into a mass tax on most workers through withholding, skyrocketing rates, base… https://t.co/sSgkHQDt0W
— Rothmus 🏴 (@Rothmus) April 25, 2026

That's exactly what it is. And they'll have to enact the tax against everyone when the billionaires leave the state and take their wealth with them. That's how it always goes.

TAXES: The Democrat’s Billionaire Tax ballot initiative asks voters to impose a one-time 5% net worth tax on the 200 billionaires who haven’t left the state. What they likely don’t know is that Democrats can expand the tax to everyone & make it recurring without voter approval. https://t.co/pHzwJqRDBb pic.twitter.com/F9RY8mxJlJ
— @amuse (@amuse) April 26, 2026

What this means is people will be forced to sell their assets, including their houses, because they can't afford to pay a five, ten, 20 percent tax on them annually.

I’ve been warning about this for a long time…

It’s not about “billionaires”.

They are coming for YOUR money, Ms., Mr., and Mrs. Middle Class. https://t.co/oBQrk1r1AG
— Carol Roth (@caroljsroth) April 25, 2026

The socialists in the Democratic Party have to destroy the middle class. It's an obstacle to their political agenda.

They want you to own nothing.

Editor’s Note: The 2026 Midterms will determine the fate of President Trump’s America First agenda. Republicans must maintain control of both chambers of Congress.

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