California’s billionaire tax is dead – but the state’s paid a staggering price

The “billionaire tax” is officially dead. Voters rejected Proposition 40 by a wide margin, restoring hope for common-sense governance in the Golden State.

This was a victory for economic growth, and jobs, and investment in the future.

The United States has never had a wealth tax that would allow the government to seize what people had saved.

Proposition 40 would have been the first. And it would have destroyed the startup culture that has made California’s economy the envy of the world.

Voters understood that entrepreneurs would leave the state if Proposition 40 passed. Or they would sell their companies to pay the tax, sending stocks into freefall.

As it is, Proposition 40 did plenty of damage simply by qualifying for the ballot.

Download The California Post App, follow us on social, and subscribe to our newsletters

California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn California Post Sports Facebook, Instagram, TikTok, YouTube, X California Post Opinion California Post Newsletters: Sign up here! California Post App: Download here! Home delivery: Sign up here!Page Six Hollywood: Sign up here!

At least seven billionaires had already left the state by Election Day, with combined wealth of more than half a trillion dollars.

That’s wealth that could have been put to productive use in California. 

Investors were spooked, and some remain wary of California. They know that union boss Dave Regan and other left-wing activists will try again. 

So will Gavin Newsom. He opposed Proposition 40 — but backed a national billionaire tax. Look out, America.

Developer Rick Caruso — who is leading the revival of Pacific Palisades — considered leaving because of Proposition 40, he told the California Post.

We cannot afford to lose builders, philanthropists, and civic leaders like him.

It is good to see some of California’s other billionaires engage in politics in a productive way, as well — though it should not have taken a direct threat to provoke them.

What California needs most is not more spending on election cycles, but investment in permanent institutions that push for sensible policies and reforms.

There are already several outstanding think tanks and academic institutions in California. There is room for more.

There is a major public education gap — which may be why voters rejected the billionaire tax but approved other state and local taxes.

People need to understand the economic consequences of their political choices.

California dodged a bullet. But the battle is not over.

The post California’s billionaire tax is dead – but the state’s paid a staggering price appeared first on New York Post.