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Eat The Rich: California Democrats Trigger Reverse Gold Rush With Wealth Tax
Authored by Jonathan Turley,
This month, the anniversary of the California Gold Rush came and passed with little mention … for good reason. When James W. Marshall found gold at Sutter’s Mill, millions traveled great distances to seek their fortune in the “Golden State.”
Now, 178 years later, California has engineered an inverse Gold Rush, virtually chasing wealth from the state. Rather than covered wagons going West, there is a line of U-Hauls going anywhere other than California.
From boondoggle projects to reparations, California politicians continue to rack up new spending projects despite a soaring deficit and shrinking tax base.
Rather than exercise a modicum of fiscal restraint, Democrats are pushing through a tax that takes five percent of the wealth of any billionaires left in the state.
I have long criticized the tax as perfectly moronic for a state with the highest tax burden and one of the highest flight rates of top taxpayers.
In my new book, “Rage and the Republic: The Unfinished Story of the American Revolution,” I discuss the reversal of fortunes in California and other blue states as politicians unleash new “eat the rich” campaigns before the midterm elections.
The problem, of course, is that billionaires are mobile, as is their wealth. Liberals expect billionaires to stay put in a type of voluntary canned hunt. They are not. Billionaires are joining the growing exodus from the state, taking their companies, investments, and jobs with them.
The latest billionaire to be chased off may be Meta CEO Mark Zuckerberg, who is reportedly heading for Florida.
The growing departures have triggered outrage among many on the left, who are in disbelief that billionaires will just not stand still to be fleeced.
Former New York Magazine editor Kara Swisher captured that rage in a recent posting, declaring “you made…all your money in California, you ungrateful piece of s***, you could figure out a way to pay more taxes, and we deserve the taxes from you, given you made your wealth here . . . so why don’t we just do shock and awe at this point, because you don’t seem to be availing yourself to thinking that you owe your state something more.”
By some estimates, California has already cost over a trillion dollars in lost investments and business. That is no small achievement.
Here’s a mind teaser: How can you burn a trillion dollars (which would create a stack some 67,866 miles high) without taking years and destroying the environment?
California politicians have a solution: Have people take it out of the state in a reverse gold rush.
In addition to saying that they want to grab 5 percent of the wealth of these billionaires, California Democrats are planning to base wealth calculations on the voting shares of corporate executives. Often, particularly with start-ups, entrepreneurs have greater voting shares than actual ownership. However, they will be taxed as if voting shares amounted to actual wealth.
In other words, California is moving to nuke the entrepreneurs who created the Silicon Valley boom.
Emmanuel Saez, the U.C. Berkeley economist who helped design the tax, insists that they may not want to stay, but they will still be tapped. They are planning to trap the wealthy fleeing the state retroactively: “The tax is based on residence as of Jan. 1, 2026, sharply limiting their ability to flee the state to avoid paying. Despite billionaires’ threats to leave, I think extremely few will have been able to change residence by Jan. 1, given the complexity of doing so.”
The effort to retroactively impose such a tax is legally controversial and will face years of challenges. In my view, this is unconstitutional, but admittedly it is a murky area.
Regardless of the outcome, a wealth tax will affect a wide range of other wealthy taxpayers. If Democrats can get a retroactive wealth tax to be upheld, it is doubtful that they will stop with billionaires. Why should other top taxpayers stick around to find out where the next cull will fall in the tax brackets?
Recently, Gavin Newsom boasted, “California isn’t just keeping pace with the world — we’re setting the pace.” That is undeniably true if the measure is the record number of U-Hauls fleeing the state — more than any other state. Indeed, the only thing harder to find than a wealthy taxpayer in California appears to be a U-Haul.
According to U-Haul’s data, the state is again leading blue states in the exodus. The Washington Post noted recently that “California came in last. Massachusetts, New York, Illinois, and New Jersey rounded out the bottom five. Of the bottom 10, seven voted blue in the last election.” Conversely, “nine of the top 10 growth states voted red in the last presidential election,” with Texas again leading the growth states.
The Post put it succinctly, “People want to live in pro-growth, low-tax states, while the biggest losers tend to be places with big governments and high taxes.”
The problem is that, while the economics are horrific, the politics remain irresistible.
Democratic Rep. Ro Khanna, who represents part of Silicon Valley, recently mocked billionaires rushing to escape the state. Laughing at his own constituents, Khanna quipped, “I will miss them very much.”
You will not be alone as California becomes known as the La Brea Tar Pit of taxation.
They are on the verge of converting the state motto from “Eureka” to “Welcome to Hotel California, you can check out any time you like, but you can never leave.”
Jonathan Turley is a law professor and the best-selling author of “Rage and the Republic: The Unfinished Story of the American Revolution.”
Tyler Durden
Sat, 02/14/2026 - 20:15
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Ben Goertzel had dozens of email exchanges with Jeffrey Epstein.
Horacio Villalobos#Corbis/Getty Images
Ben Goertzel, a computer scientist who popularized the term AGI, courted Jeffrey Epstein for research funding, emails show.
DoJ files show that Goertzel was aware of Epstein's criminal charges, and their correspondence continued until at least 2018.
Goertzel told Business Insider he "made a mistake" in accepting Epstein's money and regretted not doing due diligence.
In January 2013, Jeffrey Epstein sent a blunt email to the computer scientist Ben Goertzel. Epstein had funded Goertzel's research in artificial intelligence and was frustrated with a lack of progress. However, on this day, the disgraced financier wasn't writing to discuss algorithms or neural networks — he wanted to discuss Goertzel's hair.
"I think it is now time for you to drop the hippie look," Epstein wrote, warning Goertzel that his "disheveled 80s appearance" was an "unnecessary hindrance" to securing the capital that might one day help the two men achieve AGI — artificial general intelligence, a hypothetical level of computer intelligence that could surpass that of humans. Epstein compared the scientist's ponytail to "spinach in the teeth of a friend."
"I would be willing to cut my hair for a lot of AGI money," Goertzel replied.
Ben Goerzel (right) with Kelly Larson (co-curator of TEDx Hong Kong and Asia Consciousness Festival) and Jeffrey Martin (visiting assistant professor at Polytechnic University)
Chris Ip/South China Morning Post via Getty Images
The exchange was among dozens between Epstein and Goertzel in files released by the Department of Justice, chronicling Epstein's fascination with the potential of AI. Goertzel, a researcher who helped popularize the term AGI and develop the humanoid robot Sophia, courted Epstein for money over several years, promising he could build the "Sputnik of AI," the emails show.
In an online résumé that has since been removed, Goertzel said Epstein gave him a $100,000 research grant in 2001. Emails reviewed by Business Insider show Epstein agreed to give Goertzel at least another $100,000 between 2008 and 2018, spread out across multiple transfers. It could not be learned how much of the money Goertzel ultimately received.
The emails show Goertzel was aware of Epstein's criminal charges. In a 2010 email, Goertzel congratulated Epstein on his release from the Palm Beach County Jail. In 2008, Epstein had pleaded guilty to two sex charges, including solicitation of a minor. In 2015, several days after Prince Andrew was named in a lawsuit over underage sex claims related to Epstein, Goertzel wrote about "utterly idiotic negative publicity in the news" and said he was sorry Epstein's camp had to deal with it.
"Maybe some variation of what is alleged did happen, but if so it was surely an occurrence among reasonably mature people who mutually consented at the time, so why is it anybody else's business?" Goertzel wrote, before asking for $25,000 for a "corporate contribution" to one of his companies.
In a statement to Business Insider, Goertzel said he "made a mistake" in accepting Epstein's money. He said he regretted not doing due diligence on Epstein's crimes and that he had "basically zero knowledge of Epstein's sexual peculiarities and exploitative practices."
He added: "I deeply regret being social-engineered by this terrible human being and not doing more research into him decades ago. I won't make this sort of mistake again."
'The Sputnik of AI'
Goertzel is currently the CEO of SingularityNET, an AI and blockchain company. He is also chair of The AGI Society, a nonprofit that holds an annual AI conference.
His correspondence with Epstein was among millions of documents released by the Justice Department. The files have reverberated through the business world, revealing emails between Epstein and Tesla CEO Elon Musk, Virgin founder Richard Branson, LinkedIn founder Reid Hoffman, among others. The fallout for some people named in the files has been swift. Goldman Sachs' top lawyer, Kathryn Ruemmler, resigned in mid-February, and Brad Karp resigned as chairman of the law firm Paul Weiss, among others.
Appearing in the files does not necessarily suggest that a person has engaged in wrongdoing.
In one of the emails released by the Justice Department, Goertzel said he had known Epstein since 2001. Epstein took an interest in what labs like MIT and Google were doing in the AI field. Goertzel, who some consider one of the "godfathers of AGI," coauthored a 2006 book on the topic, and in 2008, he created OpenCog, an open-source project to try to architect human intelligence. Goertzel told Business Insider that he met Epstein through "mutual friends" in New York City.
Epstein was well-connected with the rich and the powerful.
Martin BUREAU / AFP via Getty Images
Epstein appeared concerned in some emails by the lack of support for Goertzel's AGI theories among mainstream experts. "i believe in you. i can't figure out why i am in the minority," he told Goertzel in 2010. In a 2011 email, Goertzel asked if Epstein would fund half of a $3 million grant over four years to fund a "full speed ahead toward AGI" plan, which included building AI that could control a video game character and a humanoid robot.
"Of course, US$3M is a lot of money. However, this would be the 'Sputnik of AGI' -- it would set the development of AGI on a whole new course," Goertzel wrote.
In his statement to Business Insider, Goertzel said, "I had basically zero knowledge of Epstein's sexual peculiarities and exploitative practices and have no orientation toward that sort of thing and little understanding of it -- it was all about being overly desperate at that stage for any source of $$ to fund innovative frontier science, which Epstein did recognize as valuable but mainstream science at the time did not."
Epstein sometimes pushed Goertzel for more tangible proof of breakthroughs and tried to influence some research directions, the emails show. In February 2013, he emailed Goertzel and suggested that having an AI system pass "iq tests for children" would provide a concrete research milestone. Goertzel agreed to pursue the idea.
"Epstein was very smart and fairly technically savvy and had a lot of ideas about AI, which were not terribly stupid nor terribly brilliant," Goertzel told Business Insider. "I did not pay much attention to them nor did they influence my work in any way."
Ben Goertzel, gives a press conference with Hanson Robotics at Web Summit, 2019
Henrique Casinhas/SOPA Images/LightRocket via Getty Images
Epstein used corporate and foundation vehicles to send money to Goertzel, including his Southern Trust Company, registered in the US Virgin Islands, the emails show.
"As before, we can do this as a tax-deductible donation to a nonprofit, assuming that's still your preference," Goertzel said in a September 2010 email to Epstein.
Depending on the circumstances, Goertzel, who spent some of his time in Hong Kong, requested that the money be sent to different nonprofits' accounts, the emails show. In 2014, Goertzel requested that Epstein send the money to Humanity+, a nonprofit focused on transhumanism that he was vice president of. Goertzel said it would act as a fiscal "pass-through" so the money could be diverted to himself and other researchers.
"Yes all this was totally legit, the funding was going to open-source AGI R&D for the good of humanity and its future, which was very much within the mandate of Humanity+ as a 501-3c nonprofit," Goertzel told Business Insider.
'Moronic media shitstorm'
Goertzel told Business Insider he "reconnected" with Epstein in 2008 after several years of no contact, and that Epstein told him about his legal situation.
"He framed it as a politically motivated prosecution for involvement with a consenting adult. I believed him. I should not have," Goertzel told Business Insider.
Several emails show Goertzel and Epstein arranging to meet in person. Goertzel told Business Insider they met on several occasions at Epstein's New York and Florida offices. "I never hung out with him in a social setting, never went to the island or flew in the jet or saw him partying with girlfriends or anything like that," he said.
In 2015, Goertzel was following up on a payment he hoped to receive from Epstein. Richard Kahn, Epstein's accountant, responded that it had to be put on hold due to "bad press." The Guardian had reported days earlier that Prince Andrew was named in a US lawsuit involving Epstein.
"I don't want to push you guys at a difficult time, but given my own situation I do feel moved to ask if Jeffrey might still be able to help with $25K for my 'corporate contribution' to the OpenCog Hong Kong project," Goertzel wrote. "He has helped in this way every year since 2010, usually via a donation to Humanity+."
The South China Morning Post reported earlier on some of the payments Epstein made to Goertzel to help him secure Hong Kong grants.
Epstein responded, "yes 25," and Goertzel thanked him and said he hoped to resume conversations "once this current moronic media shitstorm blows over."
Emails between the men continued for several years. In December 2018, a few days after the Miami Herald published an investigation into Epstein that contributed to his arrest on federal sex-trafficking charges the next year, Goertzel sent an email inviting Epstein to an AI and blockchain event in New York. Alternatively, he said, they could find another time to meet in the city.
"let me know if you're in town and might spare a few moments," Goertzel wrote. "it's been a while!"
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