The concept of a “billionaire tax” has been criticized as a misguided socialist notion with roots spanning centuries.
In fact, the earliest caution against such a tax dates back over 200 years, voiced by French observer Alexis de Tocqueville.
Tocqueville was captivated by America and its spirit, feeling that France and much of Europe had lost that vitality.
During his time, the widespread class struggles and division that were key themes in the works of his contemporary Karl Marx hadn’t quite permeated the U.S.
Tocqueville traveled across the nation and penned his renowned book, *Democracy in America*, which continues to be a subject of study today.
He didn’t just document his impressions of America during the optimistic “Age of Good Feelings.” He also devised a theory on what sustains a democracy.
Tocqueville recognized that a significant argument against democracy lies in the idea that the impoverished, who outnumber the wealthy, might attempt to seize the rich’s wealth.
He pointed out, “In America, where the poor rule, the rich are always in fear of abuse of power.”
Tocqueville was also aware that democratic governments faced the risk of financial disaster. He noted how the poor could elect for “lavish” government expenditures benefiting them.
Referring to “some of the ancient democratic republics,” he wrote, “the national treasure was exhausted not only for public entertainment, but also for the relief of the poor.”
To prevent chaos and economic failure, Tocqueville proposed two remedies.
First, he asserted that a democracy requires a robust middle class that holds property, where “every man has something to protect and little to take from others.”
This strong middle class would help moderate government expenditure. “The luxuries of democracy become less to be feared as the people acquire a share of the wealth,” he argued.
Secondly, he suggested that governance could be conducted by representatives of the people instead of direct democracy, which would help temper the majority’s more passionate impulses.
Fast forward to California in 2026.
The union for government workers has gathered enough signatures to place a “billionaire tax” on the ballot.
This proposal differs from typical taxes as it aims to confiscate a portion of the wealthy’s assets.
Usually, Californians wouldn’t be on board with such an idea.
It’s not that we harbor resentment towards the rich. Many of us either work for them or admire their success, dreaming of achieving similar heights in Silicon Valley or Hollywood.
Yet, it’s impossible to ignore the erosion of the middle class. Homeowners, small business operators, and professionals are shouldering a significant tax and regulatory load.
They’ve felt the burden for at least a decade.
This millionaire tax decision will hinge on a referendum rather than the usual deliberation by elected officials.
Essentially, the vast majority of voters—most of whom aren’t billionaires—will determine if they can claim a chunk of the wealth held by the tiny fraction of billionaires.
This scenario is precisely what Tocqueville warned against.
It breeds instability and conflict, potentially leading to economic collapse, which ultimately culminates in oppression.
Tocqueville had a vested interest in America’s success because he believed in the promise of freedom.
To advocate for freedom, he contended that democracy needed to be presented not only as a fair government form but also as an efficient one.
California, blessed with natural resources like gold, oil, and fertile soil, is a testament to this idea.
However, the real wealth of California stems from a legal framework that protects what we create, earn, and cultivate.
It can be easy to overlook this truth. With the splendor around us, it’s tempting to get lost in dreams of a fairer world, where everyone has their needs met.
Yet Tocqueville cautions that when we misuse democracy to seize property, we jeopardize the very prosperity that enriches and liberates all Californians.
