Tipsheet

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

Amy Curtis
Amy Curtis  |  April 27, 2026 8:00 AM

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.

And here's how that process would reportedly work:

The paragraph to authorize this vast wealth-grab is here, it seems:

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."

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.

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.

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.