California’s $1 Trillion Loss: Billionaires Depart Amid Proposed Wealth Tax
‘Fox News @ Night’ panelists discuss calls for investigation into alleged fraud in California and the consequences of the state’s proposed billionaire tax.
Venture capitalist Chamath Palihapitiya has raised alarms about California’s proposed billionaire tax, claiming it is driving an exodus of ultra-wealthy residents. He argues that this trend will exacerbate, rather than alleviate, the state’s budget deficit.
Palihapitiya, who has been closely monitoring capital flight from California, estimates that the state has already lost around $1 trillion. He stated, “We had $2T of billionaire wealth just a few weeks ago. Now, 50% of that wealth has left—taking their income tax revenue, sales tax revenue, real estate tax revenue, and all their staffs (and their salaries and income taxes) with them,” in a post on X.
As discussions continue regarding the measure’s potential inclusion on the November statewide ballot, some of Silicon Valley’s most influential figures are warning that it could trigger a mass departure of founders and capital.
TECH BILLIONAIRES THREATEN TO FLEE CALIFORNIA OVER PROPOSED 5% WEALTH TAX
Chamath Palihapitiya, founder and chief executive officer of Social Capital Hedosophia Holdings Corp., said $1 trillion has already exited California over taxes. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
California has historically relied on its billionaire class, one of the largest in the nation, to support its budget. “California billionaires were reliable taxpayers,” Palihapitiya noted. “They were the sheep you could shear forever. Now California will lose this revenue source forever. Unless this ballot initiative is pulled, we will not stop the billionaire exodus. With no rich people left in California, the middle class will have to foot the bill.”
His remarks come as California voters consider a proposed ballot initiative backed by the Service Employees International Union–United Healthcare Workers West. This initiative would impose a one-time 5% tax on the assets of California residents worth more than $1 billion. Supporters argue that the revenue could help mitigate federal funding cuts for healthcare.
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California Gov. Gavin Newsom has previously said he is against the proposed billionaire tax. (Justin Sullivan/Getty Images / Getty Images)
In December, California Governor Gavin Newsom expressed his opposition to the proposed billionaire tax, while also cautioning against panic surrounding the measure. “It’s not something to be panicked about, but it’s part of the broader concern and narrative that’s developed in this country of the haves and have-nots, not just income inequality, but wealth inequality,” he remarked during an event at The New York Times DealBook conference.
‘Fox News @ Night’ panelists discuss calls for investigation into alleged fraud in California and the consequences of the state’s proposed billionaire tax.
Venture capitalist Chamath Palihapitiya has raised alarms about California’s proposed billionaire tax, claiming it is driving an exodus of ultra-wealthy residents. He argues that this trend will exacerbate, rather than alleviate, the state’s budget deficit.
Palihapitiya, who has been closely monitoring capital flight from California, estimates that the state has already lost around $1 trillion. He stated, “We had $2T of billionaire wealth just a few weeks ago. Now, 50% of that wealth has left—taking their income tax revenue, sales tax revenue, real estate tax revenue, and all their staffs (and their salaries and income taxes) with them,” in a post on X.
As discussions continue regarding the measure’s potential inclusion on the November statewide ballot, some of Silicon Valley’s most influential figures are warning that it could trigger a mass departure of founders and capital.
TECH BILLIONAIRES THREATEN TO FLEE CALIFORNIA OVER PROPOSED 5% WEALTH TAX
Chamath Palihapitiya, founder and chief executive officer of Social Capital Hedosophia Holdings Corp., said $1 trillion has already exited California over taxes. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
California has historically relied on its billionaire class, one of the largest in the nation, to support its budget. “California billionaires were reliable taxpayers,” Palihapitiya noted. “They were the sheep you could shear forever. Now California will lose this revenue source forever. Unless this ballot initiative is pulled, we will not stop the billionaire exodus. With no rich people left in California, the middle class will have to foot the bill.”
His remarks come as California voters consider a proposed ballot initiative backed by the Service Employees International Union–United Healthcare Workers West. This initiative would impose a one-time 5% tax on the assets of California residents worth more than $1 billion. Supporters argue that the revenue could help mitigate federal funding cuts for healthcare.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
California Gov. Gavin Newsom has previously said he is against the proposed billionaire tax. (Justin Sullivan/Getty Images / Getty Images)
In December, California Governor Gavin Newsom expressed his opposition to the proposed billionaire tax, while also cautioning against panic surrounding the measure. “It’s not something to be panicked about, but it’s part of the broader concern and narrative that’s developed in this country of the haves and have-nots, not just income inequality, but wealth inequality,” he remarked during an event at The New York Times DealBook conference.
