“5% Today… EVERYTHING Tomorrow?” The California Tax Plan Critics Say Could Destroy Wealth Nationwide

In this fiery episode of On the Record, Christian Briggs takes aim at California’s proposed billionaire and millionaire “net worth tax,” calling it one of the most extreme and dangerous economic policies in modern U.S. history. Framing it as more than just a state-level issue, Briggs warns that what starts in California could quickly spread across the country.At the center of the debate is a proposed one-time 5% tax on net worth for billionaires, designed to raise an estimated $100 billion in revenue. But Briggs argues the reality is far more complicated—and far more damaging. He explains that because the tax is based on total assets rather than income, many wealthy individuals would be forced to sell off significant portions of their holdings—such as real estate, stocks, or businesses—just to pay the tax. This could trigger a cascading effect of additional taxes on those asset sales, meaning the true cost could rise far beyond the stated 5%, potentially reaching 15–20% or more.Briggs also warns that this policy could drive high-net-worth individuals out of the state, reducing overall tax revenue rather than increasing it. He points to historical examples like the luxury tax of the 1990s, which he claims resulted in economic losses far exceeding the revenue it generated.A key concern throughout the episode is the broader implication of the proposal. Briggs argues that this tax is not just a one-time measure but the beginning of a larger trend toward wealth-based taxation. He suggests that if implemented, it could eventually expand beyond billionaires to include individuals with far lower net worths, potentially affecting millions of Americans.The discussion also touches on the political and economic ripple effects. With a significant portion of California’s tax revenue already coming from top earners, Briggs questions how the state would replace that income if those individuals leave or reduce their economic activity. He frames the proposal as a fundamental shift in how wealth and success are treated in the U.S. economy.Ultimately, Briggs presents the issue as a turning point: a choice between policies that encourage growth and investment, or those that risk discouraging innovation and driving capital away. Whether one agrees or disagrees with his perspective, the episode makes clear that the stakes go far beyond California—and could shape the future of taxation across the country.