California Democrats thought they'd discovered the perfect way to fund their socialist agenda.
Tax the rich and watch the money roll in.
But the Washington Post just delivered one brutal warning about California's wealth tax that has Democrats fuming.
Bezos' Paper Dumps Cold Water on Socialist Dream
The Washington Post editorial board — owned by billionaire Jeff Bezos — threw California's wealth tax backers under the bus with a scathing editorial that compared their approach to "teenage boys using cologne."¹
"Some [taxes] are necessary to pay for public services, but government eventually reaches the point of diminishing returns — then passes it into repulsion," the Post's editorial board wrote.²
The proposed ballot initiative would slap a 5% wealth tax on California billionaires — about 200 people who'd be forced to fork over tens of billions of dollars to fund healthcare, education, and food assistance programs pushed by the Service Employees International Union.³
Google cofounder Larry Page and Palantir cofounder Peter Thiel already adjusted their residencies before year's end just in case this socialist scheme passes.⁴
Even California Governor Gavin Newsom — a Democrat eyeing a 2028 presidential run — opposes the wealth tax because "he understands it would kill the Golden State's golden goose," according to the Post.⁵
California Already Proved Tax Hikes Backfire
History shows California tax hikes backfire spectacularly — high earners simply move away or adjust their taxable income to avoid the hit.
California's tax system already focuses heavily at the top, making the state extremely vulnerable when wealthy residents relocate to Florida, Texas, or other states without income taxes.
The Post warned that once top earners flee, radical leftist activists will "target the next tier of 'rich' people who don't have as much flexibility to flee."⁷
That's when the middle class gets hammered.
The editorial called that scenario a "disaster" for California's economy.⁸
Venture capitalist Chamath Palihapitiya predicted the proposed billionaire tax "has single-handedly changed the trajectory of the California economy by $100 to $200 billion over the next five to 10 years."⁹
He knows people "with a collective net worth of $500 billion" who "scrambled and left California for good" just to avoid this wealth grab.¹⁰
The Socialist Spiral Accelerates
California lost 716,948 residents between 2020 and 2021 while only gaining 385,188 — a net loss of 331,760 people who took $29 billion in taxable income with them.¹⁰
The people moving into California earned far less at $87,000 on average compared to the $183,737 average income of those leaving.¹¹
California is trading productive taxpayers for welfare recipients.
That's economic suicide.
Palmer Luckey, founder of defense tech startup Anduril, warned the wealth tax would force him to liquidate "huge chunks" of his company to pay for "fraud, waste and political favors."¹²
Tech CEO Garry Tan said the tax would hurt innovation and eventually weaken support for healthcare services.¹³
Even Democratic Congressman Ro Khanna — who represents Silicon Valley and supports the tax — had to acknowledge "lack of accountability and fraud concerns over state tax dollars."¹⁴
Sacramento has already burned through billions on a failed high-speed rail project that's over-budget and behind schedule.
Billionaire investor Bill Ackman called California on a "path to self-destruction" and predicted the state's "most productive entrepreneurs would take their tax revenue and job creation elsewhere."¹⁵
The wealth tax needs 875,000 signatures to qualify for the November 2026 ballot.
California Democrats are learning a hard lesson: you can't tax your way to prosperity when the people paying the bills have private jets waiting to take them somewhere else.
¹ Editorial Board, "California's billionaire tax ballot proposal is killing golden geese," The Washington Post, January 1, 2026.
² Ibid.
³ "New tax on the wealth of billionaires," California Legislative Analyst's Office, 2025.
⁴ Editorial Board, "California's billionaire tax ballot proposal is killing golden geese," The Washington Post, January 1, 2026.
⁵ Ibid.
⁶ Ibid.
⁷ Ibid.
⁸ Eva, "California's billionaires may have 2 choices in 2026: Leave the state or pay $50 million or more," Deseret News, December 23, 2025.
⁹ "As Billionaires Seethe, Organizers Say Proposed Wealth Tax in California Is 'Not Radical,'" Common Dreams, January 2, 2026.
¹⁰ "California's Fiscal Cliff: As Residents Flee, California Trades Wealthy Residents for Poorer Ones," Reform California, 2023.
¹¹ Ibid.
¹² Jason Ma, "California tech founders unload on a proposed state wealth tax that already has some billionaires preparing an escape," Fortune, December 28, 2025.
¹³ Margaux MacColl, "California's billionaire tax, explained," San Francisco Standard, December 30, 2025.
¹⁴ Jason Ma, "Peter Thiel and Larry Page are preparing to flee California in case the state passes a billionaire wealth tax," Fortune, December 27, 2025.
¹⁵ "Tech billionaires threaten to exit California over proposed wealth tax," KTVU FOX 2, December 30, 2025.