Even Gavin Newsom Knows Wealth Taxes Are Economic Suicide

The Billionaire Exodus Newsom Can’t Deny

California’s own Governor Gavin Newsom — the progressive darling, the king of climate mandates and COVID lockdowns — just admitted what we’ve been shouting from the rooftops: Wealth taxes don’t work. In fact, a recent state analysis found that while a one-time wealth tax could generate “tens of billions of US dollars” in initial revenue, it could cost California hundreds of millions per year in long-term revenue if high-net-worth residents relocate, reducing the overall tax base and dampening investment. That trend is already influencing decisions now, with reports of billionaires leaving California and shifting assets to lower-tax states in anticipation of the proposal.

Faced with a proposal to hit billionaires with a one-time 5% tax on their net worth, Newsom said exactly what most economists with a brain have already said: this tax will drive money and investment out of California.

And guess what? It already is.

Newsom told Politico, “This is my fear... it’s happening.” He warned the tax would have “very real” economic consequences, with billionaires fleeing, start-ups pulling out, and long-term investors getting cold feet.

This isn’t a theory anymore. It’s reality.

The Data Doesn’t Lie — The Billionaires Are Already Gone

We’re not talking about some hypothetical reaction. This isn’t “if” billionaires might leave. They already have.

Let’s look at the receipts:

• Larry Page, co-founder of Google, just moved multiple business entities out of California and dropped $173 million on two mansions in Miami.
• Larry Ellison, chairman of Oracle, unloaded his San Francisco palace for $45 million.
• Sergey Brin and Peter Thiel are shifting operations out of the state — and fast.
• Up to 20 billionaires are reportedly making moves to exit California over this looming tax.

These aren’t just rich guys packing bags. These are the builders of the digital economy — moving their companies, their capital, and their payrolls somewhere else.

That’s tens of thousands of jobs. Billions in taxable income. Gone.

Newsom Breaks Rank with the Far-Left

It’s rare you see a liberal leader admit his own side is wrong. But that’s exactly what Newsom is doing here.

Despite years of championing so-called "progressive" tax policy, Newsom is drawing the line in the sand. He told Politico, “It’s really damaging to the state,” and added: “I think it will be defeated, because I think people understand what it does versus what it promotes to do.”

That’s political speak for: It’s a gimmick. It doesn’t work.

And let’s be honest — this is the same guy who spent the pandemic hammering small businesses while wining and dining at the French Laundry. If he’s saying this tax is bad for California, you better believe it’s a disaster.

Why Wealth Taxes Always Fail

Let’s break it down.

Wealth taxes don’t tax income — they tax ownership. That means they penalize people not for what they earn, but for what they’ve built. It’s a war on capital — and in America, capital moves.

That’s why state-level wealth taxes are economic suicide. You can’t trap people with money. They’ll just leave.

Newsom admitted as much at the New York Times DealBook Summit, saying, “States can’t isolate [themselves] from the 49 others” when it comes to tax policy.

Exactly. You’re not taxing a billionaire. You’re telling him to take his business — and the jobs that come with it — to Florida or Texas.

And they are.

The Union-Backed Lie: "This is About Fairness"

The driving force behind the wealth tax? SEIU-United Healthcare Workers West, a union with deep ties to Democratic politics.

Their spin? That Newsom is just protecting "roughly 200 ultra-wealthy individuals."

But here’s what they’re really doing: using economic class warfare to cover for a broken healthcare system propped up by federal money and bloated bureaucracies. They want to force billionaires to bankroll their failing programs — even if it means torching California’s economy in the process.

They don’t care about outcomes. They care about optics.

Newsom, to his credit, isn’t taking the bait. But let’s not kid ourselves — he’s not doing this out of principle. He’s doing it because the numbers don’t lie, and the economic bleed is getting worse by the day.

What This Means for America: The Warning Is Clear

This isn’t just about California.

This is about every American state watching this play out in real time. New York. Illinois. Oregon. These places are next in line for the wealth tax circus.

And it’s all part of the bigger plan.

The elites — in politics, media, and especially banking — want to push middle America into dependence, while chasing off the productive class with high taxes and regulations. Then they’ll introduce FedNow, central bank digital currencies, and full-spectrum surveillance to control what’s left of your money.

They’re bleeding the system dry — on purpose.

Newsom didn’t suddenly grow a conscience. He just saw the writing on the wall. When even he admits the wealth tax is a disaster, it’s time for every American to wake up and realize: we’re being robbed, distracted, and controlled.

This Is the Time to Protect Yourself

Don’t wait for the next tax hike. Don’t wait for the next billionaire to flee. The system is unraveling — and the elite bankers and union bosses are tightening their grip.

You need to act.

For patriots ready to go deeper, join the Inner Circle subscription — usually $39.95, now only $19.95/month.

The wealth tax is just the beginning. What comes next is full control. Stand up. Speak out. And protect what’s yours — before they take it all.