California's proposed 5% wealth tax on billionaires is framed as bad policy that would drive rich job creators out of the state and eventually hit ordinary earners.

• California wants to raise $100 billion from its 200-250 billionaires, spending most on health and the rest on food and education.
• Because billionaires would have to sell stock and pay income tax on the sale to cover the bill, the real cost is closer to 8-10%, not 5%.
• Most billionaire wealth is paper equity in companies, not cash, so the tax forces asset sales.
• California already blew through a $100 billion surplus, wasted $24 billion on homelessness that only got worse, and has seen a net 3 million residents leave.
• Gavin Newsom now wants a national version and calls the top 10% — households making $250,000 — rich, meaning the tax would eventually reach regular earners.

Outlook: If passed, billionaires will likely relocate to Florida, Texas, or Nevada, and other blue states could follow with similar taxes.