To mobilize private resources to help San Francisco, Mayor Daniel Lurie is enlisting corporate leaders through initiatives like the Partnership for San Francisco and the San Francisco Downtown Development Corp. 

California has long had a complicated relationship with wealth. The state creates it at a scale unmatched anywhere in the country, driven by industries that have reshaped the global economy. Yet public policy often treats that wealth as something to penalize rather than engage.

That tension is resurfacing in proposals for a statewide billionaire tax and other measures aimed at high earners and large corporations, including CEO taxes in Los Angeles and San Francisco. These policies are often framed as responses to inequality. But they also raise a more fundamental question: What should California expect from the people who benefit most from its economy?

Get Digital Access and Stay Informed With Trusted Local News.

Get Digital Access and Stay Informed With Trusted Local News.

The state’s reliance on wealth creation runs deep. California already has one of the highest tax burdens in the country, and the top 1% accounts for more than 40% of all personal income tax payments. That revenue funds public education, healthcare, infrastructure and social services. When high earners relocate or shift investment, the consequences affect budgets, jobs and long-term economic stability.

Article continues below this ad

That reality matters in a modern economy where wealth and talent are increasingly mobile. Companies can scale globally without deep geographic roots, and individuals can move capital quickly to states with more competitive policies. California should be careful not to make staying........

© San Francisco Chronicle