From Watts Up With That?

Essay by Eric Worrall

Soaring energy bills, a political crisis, and an insane plan to expropriate wealth creators who drive the Californian Economy.

The tax;

Explaining California’s billionaire tax: The proposals, the backlash and the exodus

By Queenie Wong
Staff Writer Follow
Jan. 19, 2026, 9:59 AM PT

The battle over a new tax on California’s billionaires is set to heat up in the coming months as citizens spar over whether the state should squeeze its ultra-rich to better serve its ordinary residents. 

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Under the Billionaire Tax Act, Californians worth more than $1 billion would pay a one-time 5% tax on their total wealth. The Service Employees International Union-United Healthcare Workers West, the union behind the act, said the measure would raise much-needed money for healthcare, education and food assistance programs.

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Which billionaires are already distancing themselves from California?

Google co-founders Larry Page and Sergey Brin

Google is still headquartered in California, but December filings to the California Secretary of State show other companies tied to Page and Brin recently converted out of the state.

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Palantir co-founder Peter Thiel

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Oracle co-founder and Chief Technology Officer Larry Ellison

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DoorDash co-founder and Chief Technology Officer Andy Fang 

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Palo Alto-based venture capitalist Chamath Palihapitiya estimates that the lost revenues from the billionaires who have already left the state would lead to more losses in tax revenues than gained by the new tax.

…Read more: https://www.latimes.com/business/story/2026-01-19/explaining-californias-billionaire-tax-proposals-backlash-exodus

Why does California need so much money in a hurry? The following might offer an explanation;

Governor Newsom signs historic package of bipartisan legislation saving billions on electric bills, stabilizing gas market and cutting pollution

Sep 19, 2025

New laws will provide California families up to $60 billion in electricity bill refunds

What you need to know: The Governor joined legislative leaders and advocates and signed major legislation that promises to bring down electricity costs, stabilize the petroleum market and slash air pollution. 

SAN FRANCISCO – Governor Gavin Newsom today signed sweeping bipartisan reforms to California’s world-leading climate policy that promise to save Californians billions of dollars on energy costs. The Governor’s action comes as the Trump administration continues its efforts to gut decades-old, bipartisan American clean air protections and derail critical climate progress.

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“I just signed into law the biggest electricity bill refunds in a decade — up to $60 billion to help bring down costs for California families. Millions of Californians will soon start saving billions on their energy costs, and the savings don’t stop there – we’re stabilizing the state’s gasoline supply to avert severe price spikes at the pump and we’re making it easier to build the abundant clean energy we need to keep bills lower. On top of all that, we’re doubling down on our best tool to combat Trump’s assaults on clean air – Cap-and-Invest – by making polluters pay for projects that support our most impacted communities.”

…Read more: https://www.gov.ca.gov/2025/09/19/governor-newsom-signs-historic-package-of-bipartisan-legislation-saving-billions-on-electric-bills-stabilizing-gas-market-and-cutting-pollution/

Why are electricity prices becoming such a political flashpoint?

Why California’s Electricity Bills Keep Rising: The Hidden Cost of Rooftop Solar Subsidies

Aug. 12, 2025 6:35 AM PT

Californians pay the second-highest electricity rates in the nation. A growing body of evidence has concluded that the No. 1 driver of higher bills is a decades-old policy that forces customers to pay for their neighbors’ rooftop solar systems.

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According to the California Public Advocates Office, this cost shift was $8.5 billion in 2024 alone, up from $3.4 billion just three years ago.

Households without solar now pay as much as 27% more on their electricity bills to cover the subsidies provided to about 1.6 million solar-equipped homes.

…Read more: https://www.latimes.com/specialsupplements/story/2025-08-12/hidden-cost-of-rooftop-solar-subsidies

I’m not suggesting rooftop solar subsidies are the sole cause of California’s fiscal crisis, California’s economic mismanagement is far broader than just the subsidies. But signing a bill to throw $60 billion at a self-inflicted cost of living crisis probably won’t help fix the state’s financial problems.

California’s 2025 state government deficit was $18 billion dollars. This year’s budget is projected to be $35 billion deficit. What do you think the 2026 California deficit will be?

Will future historians look back on the coming collapse of California, and identify a desperate attempt to subsidise soaring green energy prices as the final straw which broke the state economy? Or will historians focus on the wealth expropriation bill as the trigger for the collapse? What do you think?