Why California should tax billionaires' wealth

That shrill, highpitched squeal you've been hearing lately? Don't bother trying to adjust your TV or headphones, or calling your doctor for a tinnitis check.

- | Voices MICHAEL HILTZIK COLUMNIST

NVIDIA'S Jensen Huang is one billionaire who's perfectly fine with a wealth tax.

It's just America's beleaguered billionaires keening over a proposal in California to impose a one-time wealth tax of up to 5% on fortunes of more than $1 billion.

The billionaires lobby has been hitting social media in force to decry the proposed voter initiative, which has only started down the path toward an appearance on November's state ballot. Supporters say it could raise $100 billion over five years, to be spent mostly on public education, food assistance and California's medicaid program, which face severe cutbacks thanks to federal budgetcutting.

As my colleagues Seema Mehta and Caroline PetrowCohen report, the measure has the potential to become a political flash point.

Its well-heeled critics include Jessie Powell, cofounder of the Bay Areabased crypto exchange platform Kraken, who warned on X that billionaires would flee the state, taking with them "all of their spending, hobbies, philanthropy and jobs." Venture investor Chamath Palihapitiya claimed on X that "$500 billion in wealth has already fled the state" but didn't name names. San Francisco venture investor Ron Conway has seeded the opposition coffers with a $100,000 contribution. And billionaire Peter Thiel disclosed on Dec. 31 that he has opened a new office in Miami, in a state that not only has no wealth tax but no income tax.

Already Gov. Gavin Newsom, a likely candidate for the Democratic nomination for president, has warned against the tax, arguing that it's impractical for one state to go it alone when the wealthy can pick up and move to any other state to evade it.

On the other hand. Rep.