California's wealth tax plan is tightening the noose around high-net-worth individuals—and there's barely any room left to maneuver. Once this tax kicks in, billionaires face a serious predicament: stay put and watch a chunk of assets disappear annually, or consider relocating before the hammer falls. The mechanics are brutal. Unlike income taxes that hit once a year, a wealth tax chips away at total net worth, making it a continuous drain on capital. For those sitting on substantial crypto holdings or illiquid investments, this creates a timing nightmare. Do you liquidate assets that could moonshot later? Do you restructure holdings across different jurisdictions? The real tension here isn't just about one policy—it's about how wealth holders worldwide are rethinking geography, diversification, and long-term asset strategies. As more regions toy with similar approaches, expect accelerating capital flight and creative restructuring across borders.