California's billionaire tax is dying. Billionaires everywhere are exhaling. Somewhere, a yacht just got a name.
Tax experts say the defeat could energize Democrats in Congress. Their plan: higher federal taxes on high earners. The wealthy lose a battle in Sacramento and gain a rematch in Washington.
Consider the logic. A state tried to tax billionaires. Billionaires apparently did not enjoy it. Democrats responded by reaching for a bigger net.
This is the political equivalent of getting kicked out of one buffet and announcing a plan to open your own.
Will Congress pass it? Sure. Right after it finishes the other things it has been finishing since 1996.
Retail traders will read this and panic-buy a stock because a billionaire frowned. They will call it a thesis. It is a mood with a ticker.
Your portfolio is a rounding error on the rounding error of these people's tax bill. You will never be taxed like a billionaire. You will, however, be taxed like someone who watched a headline and bought calls.
The chart does not care about Sacramento. The chart does not care about Congress. The chart cares about nothing, which makes it the healthiest member of this story.
California's billionaires may stay put, and your options will still expire worthless.
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