Apologies to our readers: in yesterday’s HOTLINE we understated just how nefarious the California 5% wealth confiscation tax ballot initiative would be.

It’s undeniable that the union-backed measure has already chased wealthy entrepreneurs such as Google’s Sergey Brin and Larry Page out of the state. That’s because if passed this November, it would retroactively apply to anyone resident in California as of this January 1.

But there’s a double whammy against wealthy entrepreneurs in the fine print of the scheme that we weren’t aware of. It turns out the tax can snatch away as much as 50% of a Californian’s lifetime wealth and savings.

Garry Tan, the CEO of Y Combinator, explains:

Andy Fang, the co-founder of DoorDash, agrees: