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oligarchs
Pedal to the Metal on California's Billionaire Tax
I have no problem with hitting billionaires with a much higher tax bill than they now face. The deeper issue is how to prevent the creation of billionaires in the first place.
Jan 28, 2026
A coalition of unions and other progressive groups is trying to get an initiative on California’s ballot this fall which would impose a 5 percent tax on the wealth of the 200-250 billionaires living in the state. The tax would be retroactive, so it applies to billionaires who lived in the state as of January 1 of this year. The supporters estimate that it could raise $100 billion, almost 30 percent of the state’s annual budget, although the tax could be paid over five years.
Many people have asked me what I thought about the tax. I confess to originally being hesitant. I have no problem with hitting billionaires with a much higher tax bill than they now face. After all, they are the ones with the money.
The right likes to push the story that billionaires won’t have incentive to become ridiculously rich if we tax them more. I always found that absurd, but even taken seriously what would it mean? Will Elon Musk spend less money and effort bribing politicians to get government contracts and favorable regulatory treatment if we tax him too much?
But that aside, I do take seriously concerns about evasion and avoidance. Billionaires care a lot about their money, and they are prepared to go to great lengths to avoid having to surrender it to the government. There clearly is some point at which we get less tax revenue by raising rates, as a result of evasion and avoidance. And that point is lower at the state and local level than the national level, since it’s much easier for billionaires to move out of New York City or California than to leave the United States.
On this point, I was influenced by research by Joshua Rauh and Ryan Shyu showing that the state lost 60 percent of the revenue anticipated by California’s 2012 Proposition 30. This raised the marginal tax rate on people earning more than $1 million a year from 10.3 percent to 13.3 percent. This suggested to me that California was very close to this tipping point. (It got closer when Trump’s 2017 tax bill limited the deduction for state and local taxes on the federal taxes.)
Rauh works at the conservative Hoover Institute, so I naturally viewed the work with suspicion, but I could not see anything wrong with it. (If anyone can tell me where they messed up, I’m all ears.)
Anyhow, recognizing that avoidance and evasion are real, I have always been cautious about efforts to whack the rich with very large taxes. I am open to the California wealth tax because its structure seems to minimize this risk.
By making the date at which the wealth tax applies in the past, rich people cannot leave going forward. I was concerned about some billionaires fleeing when the tax was being discussed in the fall, and it seems some did, but at this point that’s water under the bridge.
To be clear, I’m absolutely certain that many of the people facing the tax will do everything they can to try to escape the tax, starting with defeating the initiative, and then tying it up in the courts as long as they can. With the ultimate decision likely to rest with the Republican Supreme Court, I’m not at all confident that the state will see the money, but we can’t preemptively surrender. At this point it seems worth going full speed ahead with the initiative.
The Longer Term: Let’s Not Have Billionaires
My bigger complaint with the effort to tax back some of the billionaires’ billions is that we should be more focused on not letting them be billionaires in the first place. There is an incredibly lazy view that we just have a market sitting there, which generates inequality, and then we need the government to step in to redistribute income.
More than a decade ago, Elizabeth Warren, who I greatly admire, did a viral video that was dubbed “you didn’t build that.” The gist of it was that the success of rich people depended on a social and physical infrastructure that was paid for by the whole of society, not just the hard work and ingenuity of the person who happened to get rich.
This is very true. To be profitable, a factory needs the roads and ports to bring their materials in and ship their finished product out. It also needs a skilled workforce to be both on the factory flaw and to handle business operations. No one can get rich by themselves.
Elizabeth Warren Doesn’t Go Far Enough
But this is only part of the story. In addition to the physical and social infrastructure, we have a massive set of rules that determine who gets to keep the goodies. I keep harping on government-granted patent and copyright monopolies, both because there is a huge amount of money at stake (easily over $1 trillion a year or $8k per household) and because they so obviously could be different.
We can make these monopolies shorter and weaker, allowing their holders to profit much less from them. Also, we can rely more on alternative mechanisms, like direct public funding of research, as we do currently with more than $50 billion a year in biomedical research at the National Institutes of Health. Many of today’s yacht-loving billionaires would still be working for a living with different rules on intellectual property.
Labor law is another obvious case where governments set the rules, and they could be structured in a way far more beneficial to workers. In the early post-World War II era it was widely recognized that large corporations with monopolistic power dominated the economy, but that was not necessarily seen as a bad thing, because their workers also benefited from higher wages. This was due to the fact that they were unionized and able to demand their share of the benefits from monopolistic power.
This is much less the case today because unions are far weaker. But that is not a natural outcome, the rules on labor-management relations were written to make workers weaker. There is no natural market in this story, the government writes the rules to make them more beneficial to one side or the other.
Just to give a few examples: the prohibition on secondary boycotts in the US is a regulation that unambiguously weakens unions. A secondary boycott would mean Elon Musk’s suppliers could be struck over sending him steel, if he didn’t give the auto workers at Tesla a big pay hike.
The ban on union shops (“right-to-work”) in most states, where all the workers who benefit from a union pay their share of the union’s costs, is a government intervention against freedom of contract. This also weakens workers. Restrictions or outright bans on collective bargaining by gig workers is another example. In addition, there could be serious penalties for violating labor laws, as in millions of dollars in fines from real courts, rather than joke sanctions from the National Labor Relations Board.
None of this is “the market.” This is a story of government policy designed to give more money to the oligarchs.
The list goes on. Mark Zuckerberg, and now Larry Ellison, would be much poorer without Section 230, which protects their massive social media platforms from the same sort of liability for spreading lies that print and broadcast media face. Different bankruptcy laws that made private equity firms liable for the debts of the companies they take over and then push into bankruptcy would likely have prevented many of today’s billionaires, as would applying a sales tax on financial transactions similar to the sales tax people pay when they buy clothes or shoes.
This is the topic of my now dated book Rigged (it’s free). The point is that the market is infinitely malleable. We can structure it in a way that leads to far more equality or in ways that gives all the money to billionaires, as we have done in the last half century.
In that context, by all means we should try to find creative ways to tax back some of the wealth we have allowed them to accumulate, but it makes much sense, and it’s much more efficient, not to structure the market in a way that gives them all the money in the first place.
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Our Unequal Economy Means the US Can't Quit War
The unprecedented concentration of wealth in the hands of a group of oligarchs pushes the United States toward a military economy.
Dec 29, 2025
The United States is drawn to war on every front, like a moth to a candle. It does not matter that Americans are sick of foreign wars stretching back 25 years in Afghanistan, Iraq, Syria, Libya, and now Venezuela, wars that have bankrupted the nation. It has no effect that the United States lacks the economic, technological, and manufacturing capacity necessary to sustain a conventional war. Nor would the United States likely win an unconventional war employing nanotechnology, biotechnology, and information warfare.
The critics allowed to appear on TV like John Mearsheimer and Jeffrey Sachs attribute this warmongering to the foolishness and the ignorance of political leaders like President Donald Trump, or to the incompetence of bureaucrats. They intentionally avoid any analysis of the economic structure of the United States, or the role of multinational banks and corporations in the formulation of policy. Their only explanation for the drive for war is the foolish actions of a “few bad apples.”
No one wants war, including the rich and powerful on all sides, in Beijing and Washington, in Berlin and Moscow, in Tehran and Tel Aviv. Yet the beating of the drums of war continues, and it grows louder. The appetite for war spreads like a vermillion fungus across the entire nation, with a military culture pushed through newspapers, movies, and television broadcasts. Preparation for war is a means of controlling the “little people” in a totalitarian manner.
The US government is pressuring every ally to rapidly increase defense spending, up to 5%, and to do so far more rapidly than can possibly be done in such a short time without massive corruption and waste. The military buildup is but a transfer of wealth, not an increase in security.
So, Why War?
The United States is collapsing as an economy, as a society, and as a civilization, weighed down by a massive debt, burdened by collapsing infrastructure and dying educational and research institutions, and strangled by a culture of pornography and narcissism. Above all, the extreme concentration of wealth over the last 20 years, since government was captured completely by the super rich, has meant that a handful of conceited frauds can determine the policy for the entire nation, and decide the fate of everyone. The basic interests of the vast majority of citizens are entirely ignored. The republic, and all traces of participatory democracy, have been consigned to the trash bin of history.
The international trade system and the embrace of “free trade” ideology played a major role in pushing the United States toward war around the world. Supply chains link together factories in loops that encircle the globe. Manufactured goods and agricultural products are brought into the United States from over the world, not because doing so is good for Americans, but because the multinational banks that control the economy seek out the cheapest labor and cheapest goods. Virtually all consumer goods in the United States go through logistics and distribution systems controlled by multinational corporations. Unlike the situation in 1945, a large part of the money that citizens (rebranded as “consumers”) spend at Walmart, Best Buy, or Amazon goes to the stockholders of those corporations and offers little or no benefit for the local economy.
The increase in military spending is a policy choice; it is the only way to avoid economic collapse.
Until the 1950s, most of what Americans ate came from local, family-owned farms. Clothes and furniture were also produced locally. Now that production and distribution have been spread all over the globe, events far away directly impact the US economy, and sometimes politicians feel pressure to use military threats, or responses, to protect American corporate interests (repackaged as “national security”).
So, too, US dependency on petroleum did not exist in the 1920s or dependency on rare earth metals in the 1980s. These are problems created by the decisions of corporations to introduce technologies that offered some conveniences, but at the price of extreme dependency of citizens on technology, which has generated large corporate profits.
The relocation of American manufacturing overseas also means that the only employment available in many regions, especially rural areas, is as police officers, guards at prisons, soldiers, or other positions in the military, police, or surveillance system. These days, security and the military are the only parts of the government budget that are growing.
The last decade has seen employment in defense surge by 40%, reaching 1.4% of the total employment base. In 2022-2023 alone the workforce expanded by 4.8% in contrast to an average of 1.7%.
No politician can oppose the increase in the military budget because, although constant foreign wars do great damage to the economy as a whole, the military has become the only part of government that increases opportunities for employment locally.
The US economy is increasingly controlled by a small number of rich families. The wages of American workers have been reduced, and the costs of living greatly increased for the profit of the few. The unprecedented concentration of wealth in the hands of a group of oligarchs has changed everything. This restructuring of society may not seem to be military in nature, but it pushes the United States toward a military economy.
The End of the Welfare State
The disposable income of workers increased beginning in the 1940s because of the redistribution of wealth forced by the reforms of the New Deal. These reforms also allowed for corporations to make enormous profits after the 1950s by selling consumer products to working people who had the disposable income to purchase them. From the 1960s on, consumption, growth, and the stock market became the primary tools for assessing the health of the economy.
Particularly from the 1970s on, this system effectively funneled wealth from working people to the wealthiest. But today consumption by workers, the middle class, and even the upper-middle class is no longer sufficient to generate profits for corporations because the people cannot spend any more. Banks have been forced to look for some other source of profit to pay off their debts. One direction they looked has been the military. Military spending creates steady demand that is not tied to market conditions, or economic booms and busts. It is funded by the people through taxes, or through the inflation created by the deficit spending that funds military expenditures.
The increase in military spending is a policy choice; it is the only way to avoid economic collapse. It must be justified by threats from China, Russia, and Iran, or terrorism. Intelligence agencies responding to the demands of banks to do everything they can to create trouble with those countries.
The true three branches of government are the politicians, the bankers, and the generals.
Companies like Oracle, Palantir, Google, and Amazon not only grow fat like ticks feeding on the military and intelligence budgets, they are merging with banks and using their control of the IT systems that power banks as a means to seize control of money itself through digitalization of the dollar, or the introduction of cryptocurrencies.
One of the most powerful billionaires, Larry Ellison, has launched a campaign to dominate media through the control of social media, entertainment, and news broadcasting. The Trump administration forced TikTok’s Chinese owner ByteDance to turn over its operations in the United States to a consortium headed by Ellison’s company Oracle in December 2025. Oracle grew to global influence as a major contractor for the CIA, and Ellison is a strong Trump supporter.
Since Ellison’s son David was installed as CEO in August 2025 of the new entertainment conglomerate Paramount Skydance—the merger of Paramount Global, Skydance Media, and National Amusements—father and son have been raising enormous funds for a hostile takeover of Warner Brothers that would give them unprecedented control over entertainment and journalism in the United States. Already CBS, under Ellison rule, has cancelled at the last minute a "60 Minutes" report on the notorious El Salvadorian prison CECOT.
These IT firms made those billions by taking out massive loans that they then used to buy back their own stock. They have nothing but debt and money in digital form. War, the threat of war, the buildup for war, is what keeps them going.
Impact on Governance
The United States government is a republic consisting of three branches: the executive, the legislative, and the judicial. The three branches complement each other, and they also regulate and balance out each other. This system ensures that power is not concentrated in any one place.
That was a long time ago. How does politics really work today?
There are three real branches of government today, and they are quite different than those described in the Constitution. The true three branches of government are the politicians, the bankers, and the generals. They are the ultimate powers behind the government, and they balance each other out because they operate at different levels and have different strengths.
The concentration of wealth has almost eliminated the impact of citizens on policy.
The politicians are able to form temporary alliances among interest groups in business, finance, and government and negotiate among them to determine policy. The bankers control money and have the power of financial manipulation to shut down the entire economy, or the activities of opponents. The generals possess a chain of command that cannot be easily broken by exterior forces, even by money, and they have the ability to use force directly, without relying on a third party, to achieve their goals.
In a healthy society, where citizens actually play a role in politics, the politicians rise to the top because their primary mission is serving the needs of their clients, whether they are bankers, businessmen, generals, or other interest groups in the general population. Politicians can play the central role because they reflect the needs of citizens. As long as politicians can effectively meet the needs of the bankers, the generals, and the citizens, and keep the money flowing to them, the system remains stable.
If wealth is too concentrated, however, to the degree that the bankers can pay off everyone and gain complete control of the economy, then they rise to the top because bankers need only service a small number of the super rich to obtain absolute power. The politicians become their puppets, and the generals are paid off by the bankers. That is what the political system in the United States has become today.
A political system run by bankers, however, will encounter enormous problems over time because everything will be decided on the basis of short-term profits, and no one will do anything for the sake of others, or follow an ideal greater than personal interest. As a result, the foundations of government, and of society, will crumble. Eventually the government will collapse into anarchy, or it will drift into war as a means of generating profits and enforcing the bankers’ iron-fisted rule over the people.
At that historical moment, the generals rise to the top because they have a viable chain of command that continues to function even as the government fails, and because they speak the language of force and violence, which will become the only language that has authority once the legitimacy of politicians and bankers has been destroyed.
The concentration of wealth has almost eliminated the impact of citizens on policy. The finance-driven speculative economy has brought trust in government and business to a new low. As a result, the only politicians in the Democratic Party who are able to take on the Trump administration are all former military and intelligence, and the election of a former CIA officer Abigail Spanberger as governor of Virginia suggests that the “CIA Democrats” have become the driving force in an ideologically bankrupt Democratic Party.
The financial kings, the bankers and billionaires, need make only one little mistake in order for the chain of command to be handed over to the military in the United States. Although military officers may not want war as individuals, once the order goes down, the entire process, especially in light of the massive increase in drones and robots in the military, will be literally on automatic.
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A Jeremiad for the Working People of the United States
The prevailing issue that demands consensus is the economic exploitation and deprivation of our economic model for working people of all demographics.
Mar 25, 2025
The oligarchs are laughing. The corporatists are laughing.
They are laughing at working people as the big con continues. They are laughing at the corporate Democratic Party whose genetic code lacks the heart to challenge the autocracy now unfolding. “Good billionaires vs. bad billionaires.” Really?
The political left spectrum is largely catatonic. Progressives lament the ineffectiveness of their wing of the Democratic Party. “Outsider” leftists are skeptical of both political parties, but too small in numbers yet to pose a threat to corporate Democrats.
The time of milquetoasts is over. It is time to recognize what must be done.
Liberals on the left spectrum are flummoxed; some stalwarts attribute their recent political debacle to the inability of the Democratic Party to distribute a cogent message of their accomplishments.
It was not the message that flopped. Rather economic numbers proved that our economic model continued to squash the interests of working people. They then sent a clear message that they were not buying the corporate Democratic dose of doldrums. They voted for President Donald Trump.
Economic Classes
Working people are comprised of the middle-working class and working class. The middle-working class identifies itself as “middle class.” The term is designed to divide working people.
Economic class has nothing to do with salaries or wages; it is about economic power. “Middle class” interests are closer to the working class than the dominant economic class.
Michael Zweig pointed this out in an insightful book in 2000 and revised in 2012. He identified the working class at 63% and the middle class at 35%. The combination presents a significant percentage of Americans who live and work largely by the undemocratic capriciousness of the 2%.
Real Economic Numbers
The income disparity in our country is at record levels as reported by the Congressional Budget Office. The income gap between the rich and everyone else is stunning. Income disparities are now so pronounced that America’s richest 1% of households averaged 139 times as much income as the bottom 20% in 2021.
The wealth disparity is just as shameful. Statista reported that in the first quarter of 2024, almost two-thirds of the total wealth in the United States was owned by the top 10%; the lowest 50% only owned 2.5% of the total wealth.
Make no mistake, If Americans do not take seriously the activities of the dominant economic class, it will be too late for working people.
The Ludwig Institute for Shared Prosperity (LISEP) reported an actual unemployment rate. LISEP tracks the percentage of the U.S. labor force that does not have a full-time job, wants one, has no job, or does not earn a living wage, conservatively pegged at $25,000 annually before taxes.
Their actual unemployment rate for this January was 23.3%.
Shadow Government Statistics (SGS) reported another actual unemployment rate. A significant demographic was mysteriously defined out of the Bureau of Labor Statistics (BLS) in 1994. Those discouraged workers who searched for work for more than one year simply vanished from the BLS unemployed numbers.
SGS reported that the actual unemployment rate for this January was 26.8%.
Inflation
The government’s Consumer Price Index (CPI) is a measure of the cost of maintaining a constant standard of living and measuring the cost of out-of-pocket expenses. However, since the 1980s the BLS has been altering its methodologies to decrease the actual inflation rate provided to the public.
The BLS ignores food and energy prices in “core” inflation numbers as if food and energy are not basic necessities for living.
The BLS transitioned from their historic fixed-weight basket of goods and services to a quasi-substitution-based basket of goods.
It also changed from arithmetic weighting to geometric weighting and to owners’ equivalent rent (OER) numbers.
Another BLS method to decrease the real inflation rate was a transition to hedonic measures, which actually attempts to measure how much enjoyment a person receives from changing from one product to another.
These changes reflected the BLS intentional artificial deflation of accurate CPI numbers from the American public.
SGS reported that the actual inflation rate for this January was 10.81%.
Big Picture Not So Good
Naturally, working people are seeking relief from this economic suffocation; according to the Council on Foreign Relations we have the largest disparity in wealth and income than any other developed country.
Good paying manufacturing jobs with other benefits left the country in dramatic numbers in the 1960s and 70s. How did this happen?
We can begin with an abysmal fact:
The economic empire of the U.S. is presently over, done, finished.
Our demise began when corporations moved to countries with low wages, regulations were minimal or nonexistent, and unions were absent. This was paradise for the corporate owner class.
This trend is continuing, and those good paying jobs are gone with no reason to return despite the bluster and gibberish emanating from the Trump administration.
The Economic Policy Institute reported that the U.S. lost 5 million manufacturing jobs in the last 25 years. To place our country in an advantageous position again will require transformation to a different economic model with smart negotiations and intelligent diplomacy with other countries.
A troubling result of the massive exodus of manufacturing jobs is the U.S. declining Gross Domestic Product (GDP). Consider in 2024, the GDP of the U.S. grew 2.8%; the GDP of China grew 5%. India, another member of the BRICS economic bloc, grew 5.6%.
Economic Tree
It is not that complicated here.
Our economic model is characterized by an economic tree for working people. At the root of the tree is the primary issue of wages and salaries.
Moving up the tree are branches that comprise secondary issues. They are viable employment opportunities; effective, affordable healthcare; comprehensive educational opportunities; comfortable, secure housing opportunities; wholesome nutrition; safe, reliable transportation; environmentally clean water, air, and land.
Will progressive organizations coalesce into a national movement for economic and political democracy and seize the Democratic Party?
The third branch are cultural issues: They are reasonable gun control, effective immigration reform, women’s healthcare rights, and LGBTQ rights. These issues are important to their demographics; however, they have been manipulated into wedge issues that distract working people from the real source of their discontent—that is the political power that maintains the privilege and power of the dominant economic class.
Working people must accept cultural issues without necessarily agreeing with them. The prevailing issue that demands consensus is the economic exploitation and deprivation of our economic model for working people of all demographics.
Emphasizing cultural issues with so called “woke” identity politics over economic class politics has resulted in the grotesque policies of Mr. Trump and the Republican Party cult.
It is these tertiary issues that Mr. Trump used to provoke and frighten MAGA working people. It distracted them into ignoring their economic class malaise.
An effective political party must work to transform primary issues into an inclusive party. Until then, cultural issues will be little but distractions for marginalized groups without actual progress for their causes; Democrats will continue to bay in the wind and lose elections while an autocratic political model is established. Project 2025 is that model and a blueprint financed by the corporate and oligarch class.
A Smart Direction
The shelf life is over for assorted corporate Democrats and corporate union leaders. Their vapid strategies and tactics unwittingly encouraged working people to support Mr. Trump. Consider that Sen. Bernie Sanders (I-Vt.) defeated Mr. Trump in polls in 2016 and 2020. Yet the Democratic Party corporate sycophants denied Sen. Sanders the nomination.
The time of milquetoasts is over. It is time to recognize what must be done.
The arc of our progressive history includes the abolitionists, labor rights, women’s suffrage, civil rights, anti-war activities, and environmental movements. All had a common theme: They were mass movements that began as large groups of people who knew they could do better.
This may be what it requires to shake us free from the dehumanizing, exploitative crimes and corruption of neofascism that Mr. Trump and his MAGA cabal have been implementing. As contradictions sharpen and immiseration increases, the choices are stark.
Make no mistake, If Americans do not take seriously the activities of the dominant economic class, it will be too late for working people. The flurry of political attacks on our Constitution are not some frivolous actions that will be remedied in two or four years. The Trump cabal is playing the long game. Even the legal foundation of American democracy, Marbury v. Madison, is in jeopardy.
The judicial branch may strike down some of the more absurd legal and constitutional excesses of Mr. Trump’s supporters. However, his cult leaders of Project 2025 are preparing for a permanent autocratic model to replace our democratic republic. It will have the veneer of democracy, but will be an autocracy in form.
Remedies
Each day, the administration plows ahead with truculent policies chipping away at the lives of working people. Will the time arrive for working people to create a national database of progressive organizations as an informational foundation for an authentic progressive movement? Will it facilitate petitions, mass demonstrations, civil disobedience, and general strikes?
Will progressive organizations coalesce into a national movement for economic and political democracy and seize the Democratic Party? Third-party options, while advancing democracy, are chimerical at this time. ICE is the new Gestapo, and waiting for a new political party to emerge is delusional.
Will our spiritual and secular organizations lead a movement or remain docile?
Pope Paul VI wrote Populorism Progressio in 1967. He stated that the restructuring of society was a welcome possibility. Though he admonished against violent means, he acknowledged a form of violence was an option:
Everyone knows, however, that revolutionary uprisings—except where there is manifest, longstanding tyranny which would do great damage to fundamental personal rights and dangerous harm to the common good of the country—engender new injustices, introduce new inequities, and bring new disasters. The evil situation that exists, and it surely is evil, may not be dealt with in such a way that an even worse situation results.
The question must be asked about a time table for ameliorating the poverty, deprivation, and suffering that will surely follow the scabrous policies of Mr. Trump. Each day is a new attack on our political and social norms; neofascist laws appear like a new head regenerated on a hydra. The courts may strike one down and another one is hatched immediately by the Trump cult.
This is addressed in a quote from Mexican poet Homero Aridjis in 1991: “There are centuries in which nothing happens and years in which centuries pass.”
We will certainly find out soon enough. We must ask ourselves are we Americans willing to take the risk; as Victor Hugo stated in an essay in 1845: “You have enemies, Good. That means you’ve stood up for something, sometime in your life.”
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