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The billionaire tax — wrong solution for California’s spending problem

Gavin Newsom says he opposes the “billionaire tax” proposed by his union allies. But for the left, the wealth tax is the Holy Grail — and California’s “structural deficit” has created the perfect opportunity.

There is nothing new about the idea of taxing wealth accumulated by rich people (who have already paid income taxes on it). However, on a national level, such a tax is barred by the U.S. Constitution’s 16th Amendment, which only permits taxes on income, not wealth.  

It may also be unlawful under the Fifth Amendment as a “taking,” since it is aimed at seizing property.

With little federal appetite for such taxes, the left has turned to state governments — particularly those in blue states.   

Californians are smart enough to figure out that a “billionaire tax” is not a one-off tax, as advertised. They look at the proposal — which is supposed to be limited to five years — and say, “yeah, sure.” 

The Democrats have a veto-proof majority in the legislature and a governor to sign whatever they want, but they could not muster the numbers to pass a billionaire tax the conventional way.

Hence the ballot initiative.

Supporters of the wealth tax, such as members of the Service Employees International Union (SEIU), include many people employed in the health care field, and they are proposing the funds be used to prevent the “collapse” of California’s health care system. 

Those scare tactics serve their own........

© New York Post