California Wealth Tax Threatens 100,000 Jobs, $28 Billion

“Real socialism hasn’t been tried!”

The claim that real socialism is untested is common on the Left, but history and recent events show otherwise. Venezuela stands as the clearest modern example of the ideology’s collapse into corruption, scarcity, and state-run misery. The consequences there are not theoretical; they are human, economic, and brutal.

The Left wants to sell democratic socialism as a kinder, cleaner version of big government that guarantees housing, healthcare, education, and food. In practice, once elites seize control of distribution, the promises break down and ordinary people pay the price. Wealthy individuals can move assets and flee punitive taxes, shrinking the revenue base and forcing burdens onto the middle class.

California offers a warning from home with its proposed billionaire wealth tax that hides an expansion clause allowing tax hikes to spread without a new vote. Projections tied that legislation to the loss of at least 100,000 jobs and $28 billion in wages, and blue states continue to see trillions in wealth depart for friendlier tax climates. When the rich leave, the middle class is left holding the bag as policymakers look for new revenue targets.

Venezuela collapsed not overnight but under predictable patterns of corruption, central planning, and elite protection. The state prioritized favored neighborhoods and officials while basic services and emergency planning atrophied. When disaster struck, the system didn’t respond — and the result was chaos instead of coordinated relief.

Even ABC News acknowledged that socialism failed in Venezuela and reported that government payrolls were inflated with people who did not work, leaving emergency plans and roles unstaffed.

Smilde said the dismal response is linked to the huge numbers of people who have left the public sector because of extremely low pay as well as corruption, such as the many people who are included in the government’s payroll but who have not worked in months or years. In a functioning government, he added, people have specific duties to design protocols spelling out procedures in case of emergencies, including earthquakes.

“It’s like trying to have a baseball team with three people on the field. You’re not sure who’s going to be the pitcher, who’s going to be catching, and who’s going to be outfielder,” he said of the government’s lack of organization.

https://x.com/ABC/status/2072251046504673664

Wealth and government connections also influenced the government’s response, with some sites given preferential treatment.

When one collapsed building was teeming with police and military school students, people accurately guessed that officials or politically connected individuals must have lived there. The police officers from a neighboring state were indeed searching for a captain, while the students and a few members of the national guard were hoping to locate a major general.

A telescopic crane, like the one Mundrain needs for the recovery of her family, was parked for several hours in what was that building’s entrance. The relatives of the well-off families who lived in the building were able to rent it. Mundrain cannot.

When the government becomes the gatekeeper of essentials, favoritism and corruption determine survival more than need or merit. International help stepped in for Venezuela because the state had hollowed out its capacity to respond, but foreign assistance cannot rebuild institutions or restore trust by itself. The human cost remains high when government functions are politicized.

There’s a political angle too: when everything is declared a right, the state gains the power to allocate life-and-death resources and to reward allies while punishing dissenters. Examples of weaponizing government are not hypothetical; some proposals and rhetoric on the Left make the threat explicit, from censorship ideas to punitive policies aimed at political opponents. That kind of power in the hands of an ideologically driven bureaucracy is dangerous for civic freedom.

Imagine a single official deciding who receives critical medical care, housing approvals, or college access on the basis of loyalty instead of need. That shift turns rights into privileges doled out by elites, and it destroys the rule of law and equal treatment under the state. American institutions and traditions are meant to prevent exactly that concentration of authority.

We marked 250 years since independence and the founding principles that rejected centralized tyranny. Now those same principles are worth defending again against imported ideas that have repeatedly failed in practice. The lessons from Venezuela and from policy experiments at home are clear: unchecked power, centralized control, and politicized distribution produce misery, not prosperity.

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