Bill Ackman Criticizes California’s Wealth Tax Proposal, Warns of Job and Capital Exodus
The Agency founder and CEO Mauricio Umansky joins Varney & Co. to warn that California’s rent control and wealth taxes are driving out builders, investors, and middle-class families.
Billionaire hedge fund manager Bill Ackman has criticized California’s proposed wealth tax, describing it as a potential government seizure of private property. He argues that such taxes have consistently failed wherever they have been implemented.
Although Ackman is not a California resident, he took to X earlier this week to voice his concerns about the proposal. If approved by voters, it would impose a one-time 5% tax on the assets of California residents worth more than $1 billion.
“I am opposed to wealth taxes because they effectively represent an expropriation of private property and have many unintended and negative consequences that have occurred in every country that has launched such a tax,” Ackman stated in his post.
This proposal emerges as California faces a projected $18 billion deficit for the fiscal year 2026-27, according to the state’s Legislative Analyst’s Office.
Billionaire hedge fund manager Bill Ackman has blasted California’s proposed wealth tax as a potential government seizure of private property, arguing such taxes have failed everywhere they have been tried. (Patrick Fallon/Bloomberg / Getty Images)
“With respect to California’s budget problem, the issue is not a lack of tax revenues. The problem is how the money is being spent,” Ackman wrote.
Recently, Ackman warned that “California is on a path to self-destruction,” especially as some tech billionaires consider leaving the state if the proposal advances. Notable figures like billionaire tech investor Peter Thiel and Google co-founder Larry Page are reportedly contemplating cutting ties with California over the proposed ballot measure, according to a New York Times report.
“Hollywood is already toast and now the most productive entrepreneurs will leave, taking their tax revenues and job creation elsewhere,” Ackman stated. “And then the Democrats highlight California Gov. Gavin Newsom as a great leader. Crazy.”
Last month, California Gov. Gavin Newsom expressed his opposition to the proposed billionaire tax, while advising against panic regarding the measure.
TECH BILLIONAIRES THREATEN TO FLEE CALIFORNIA OVER PROPOSED 5% WEALTH TAX
A view of the California state capitol building in Sacramento, California. (Arturo Holmes/Getty Images for National Urban League / Getty Images)
Supporters of the wealth tax argue that the revenue generated could help mitigate potential federal funding cuts for healthcare. The measure is backed by the Service Employees International Union–United Healthcare Workers West and remains under consideration for the November statewide ballot. It would apply retroactively to anyone who lived in California as of January 1, 2026.
Under the proposal, a resident with $20 billion in assets on that date would owe a one-time tax of $1 billion, payable over five years.
In contrast, Ackman advocates for a more targeted tax-code change aimed at billionaires who rely on stock-backed loans. He believes the tax code should be adjusted to prevent ultra-wealthy individuals from living tax-free by borrowing against their stock instead of selling it.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Last month, California Gov. Gavin Newsom said he opposed the proposed billionaire tax, while cautioning against panic over the measure. (Justin Sullivan / Getty Images)
Ackman suggests that a straightforward solution would be to tax large personal loans exceeding a person’s original investment as if the stock had been sold, effectively closing a loophole exploited by many ultra-wealthy individuals.
“One shouldn’t be able to live and spend like a billionaire and pay no tax,” Ackman emphasized.
Ackman’s post received support from fellow billionaire Mark Cuban, who reposted it with a simple, “Agree.”
Fox News’ Amanda Macias contributed to this report.
The Agency founder and CEO Mauricio Umansky joins Varney & Co. to warn that California’s rent control and wealth taxes are driving out builders, investors, and middle-class families.
Billionaire hedge fund manager Bill Ackman has criticized California’s proposed wealth tax, describing it as a potential government seizure of private property. He argues that such taxes have consistently failed wherever they have been implemented.
Although Ackman is not a California resident, he took to X earlier this week to voice his concerns about the proposal. If approved by voters, it would impose a one-time 5% tax on the assets of California residents worth more than $1 billion.
“I am opposed to wealth taxes because they effectively represent an expropriation of private property and have many unintended and negative consequences that have occurred in every country that has launched such a tax,” Ackman stated in his post.
This proposal emerges as California faces a projected $18 billion deficit for the fiscal year 2026-27, according to the state’s Legislative Analyst’s Office.
Billionaire hedge fund manager Bill Ackman has blasted California’s proposed wealth tax as a potential government seizure of private property, arguing such taxes have failed everywhere they have been tried. (Patrick Fallon/Bloomberg / Getty Images)
“With respect to California’s budget problem, the issue is not a lack of tax revenues. The problem is how the money is being spent,” Ackman wrote.
Recently, Ackman warned that “California is on a path to self-destruction,” especially as some tech billionaires consider leaving the state if the proposal advances. Notable figures like billionaire tech investor Peter Thiel and Google co-founder Larry Page are reportedly contemplating cutting ties with California over the proposed ballot measure, according to a New York Times report.
“Hollywood is already toast and now the most productive entrepreneurs will leave, taking their tax revenues and job creation elsewhere,” Ackman stated. “And then the Democrats highlight California Gov. Gavin Newsom as a great leader. Crazy.”
Last month, California Gov. Gavin Newsom expressed his opposition to the proposed billionaire tax, while advising against panic regarding the measure.
TECH BILLIONAIRES THREATEN TO FLEE CALIFORNIA OVER PROPOSED 5% WEALTH TAX
A view of the California state capitol building in Sacramento, California. (Arturo Holmes/Getty Images for National Urban League / Getty Images)
Supporters of the wealth tax argue that the revenue generated could help mitigate potential federal funding cuts for healthcare. The measure is backed by the Service Employees International Union–United Healthcare Workers West and remains under consideration for the November statewide ballot. It would apply retroactively to anyone who lived in California as of January 1, 2026.
Under the proposal, a resident with $20 billion in assets on that date would owe a one-time tax of $1 billion, payable over five years.
In contrast, Ackman advocates for a more targeted tax-code change aimed at billionaires who rely on stock-backed loans. He believes the tax code should be adjusted to prevent ultra-wealthy individuals from living tax-free by borrowing against their stock instead of selling it.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Last month, California Gov. Gavin Newsom said he opposed the proposed billionaire tax, while cautioning against panic over the measure. (Justin Sullivan / Getty Images)
Ackman suggests that a straightforward solution would be to tax large personal loans exceeding a person’s original investment as if the stock had been sold, effectively closing a loophole exploited by many ultra-wealthy individuals.
“One shouldn’t be able to live and spend like a billionaire and pay no tax,” Ackman emphasized.
Ackman’s post received support from fellow billionaire Mark Cuban, who reposted it with a simple, “Agree.”
Fox News’ Amanda Macias contributed to this report.
