Thursday, February 19, 2026

FEDERAL PROPOSAL TO NEUTRALIZE CA WEALTH TAX

By Bob Walsh

 


A legislative proposal may be making its way thru congress specifically intended to invalidate the proposed "wealth tax" in the formerly great state of California.

It should be noted that the proposed 5% billionaire tax in CA is nowhere near passing and there is a pretty good chance it will not pass and a pretty good chance that Gavin Newsom would decline to sign it into law if it makes it to his desk.

The idea from the feds is that a retroactive tax is inherently wrong.  There is also some reason to believe that CA may have legal issues with what amounts to a wealth tax, as opposed to an income tax.  In addition the implementation and management problems of such a levy would be considerable and might make it unworkable.  

The mere fact that the proposal is being pushed in CA is having the effect to pushing the uber-wealthy OUT of California.  It is being primary pimped by unions as a "fuck those rich bastards" proposal.  Such things are very popular with much of CA.  The majority of the voters in CA, some of who are actual citizens, are net tax consumers and not net tax payers, so they really don't give a shit. 

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