Billionaires Fear Working-Class Power From NYC to California
Photo Credit: San Francisco Chronicle
Twenty-six New York City billionaires spent more than $50 million to defeat Zohran Mamdani's mayoral campaign. Mamdani won anyway. Now California billionaires are mobilizing against a proposed wealth tax and the Peace and Freedom Party's gubernatorial candidate Ramsey Robinson—using the same tactics that failed in New York.
Billionaire venture capitalist Peter Thiel has publicly threatened to leave California over the SEIU-UHW backed ballot measure, which would impose a one-time 5% wealth tax on the state's billionaires—leaving them with 95% of their fortunes intact. The measure has not yet collected the 870,000 signatures required to qualify for the ballot, but has garnered lots of attention from the ultrawealthy. Ron Conway, another billionaire venture capitalist, has already donated $100,000 to "Stop the Squeeze," a committee organized to oppose the tax.
Governor Gavin Newsom has also voiced opposition. "We have to be careful about these kinds of initiatives that could potentially harm California's economy," Newsom said at a recent press conference.
Research on wealth taxes imposed outside California suggests the threats may be hollow. Studies of millionaire migration following state tax increases have found minimal departure rates, with Stanford and Princeton researchers concluding that "the mobility response to taxation is small." Most billionaires stay put—their businesses, investments, and networks are rooted in California.
"Let them threaten to leave," said Robinson. "The workers producing the goods and services California needs aren't going anywhere. Tax the billionaires' wealth and use it to guarantee what working people need—housing, healthcare, jobs. That's what our campaign is fighting for."
The coordinated blowback comes as California's 194 billionaires control $1.2 trillion in wealth while 7.3 million working people struggle to afford basic necessities. A National Bureau of Economic Research report found the nation's "top 400" paid an average 24% tax rate in 2018–2020—compared to 30% for the general population and 45% for top labor earners.
The Peace and Freedom Party reports thousands of volunteers are now doorknocking for Robinson's campaign, which centers on a permanent wealth tax, guaranteed affordable housing, free healthcare, and jobs.
"When billionaires spend millions to fight working people, it shows exactly who they're afraid of," said Robinson, the PFP's candidate for governor. "They tried to stop a socialist in New York. They failed. They'll fail here too—because you can't buy your way out of a movement."
California's richest 1% now hold more wealth than the bottom 90% combined, which drives the worst conditions for working people. Working families here face the nation’s highest housing costs, rates of poverty and unemployment while billionaires threaten to leave over a tax that would still leave them among the wealthiest people on earth.
"Their threats tell you everything," Robinson continued. "They were never invested in our communities. They profit from exploiting California's working people. Now they're upset we're fighting back. That tells you we're doing something right."
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