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Agency founder and CEO Mauricio Umansky joins Varney & Co. in warning that California’s rent control and wealth tax are driving out builders, investors and middle-class families.
Billionaire hedge fund manager Bill Ackman blasted California’s proposed wealth tax as a potential government seizure of private property, arguing that such taxes have failed wherever they have been attempted.
Ackman, who is not a California resident, spoke to X earlier this week to criticize the proposal which, if approved by voters, would impose a one-time 5% tax on California residents’ assets worth more than $1 billion.
“I am opposed to wealth taxes because they actually represent an expropriation of private property and have many unintended and negative consequences that have occurred in every country that has initiated such a tax,” Ackman said in his message.
The proposal comes as California faces an estimated $18 billion budget deficit for the 2026-27 fiscal year, according to the state legislative analyst’s office.
Billionaire hedge fund manager Bill Ackman blasted California’s proposed wealth tax as a possible government seizure of private property, arguing that such taxes have failed wherever they have been attempted. (Patrick Fallon/Bloomberg/Getty Images)
“Regarding California budget problem, the problem is not the lack of tax revenue. The problem is how the money is spent,” Ackman wrote.
Days earlier, Ackman said “California is on a path to self-destruction,” as some tech billionaires considered leaving the state if the proposal were to move forward.
Billionaire tech investor Peter Thiel and Google co-founder Larry Page were weighing whether to cut ties with California over the proposed ballot measure, according to a New York Times report. report.
“Hollywood is already toast and now the most productive entrepreneurs are going to go elsewhere to get their tax revenue and job creation elsewhere,” Ackman said. “And then the Democrats put forward the governor of California. Gavin Newsom like a great leader. Mad.”
Last month, California Governor Gavin Newsom said he opposed the proposed billionaires tax, while warning of panic over the measure.
TECH BILLIONAIRES THREATEN TO FLEE CALIFORNIA TO FOLLOW PROPOSED 5% SWITZERLAND TAX
A view of the California State Capitol building in Sacramento, California. (Arturo Holmes/Getty Images for the National Urban League / Getty Images)
Supporters say wealth tax revenue could help offset possible cuts in federal health care funding and say the measure is supported by the Service Employees International Union – United Healthcare Workers West.
The measure remains under consideration for the November statewide ballot and would apply retroactively to anyone residing in California on or after Jan. 1, 2026.
Under the proposal, a resident with $20 billion in assets as of that date would owe a one-time tax of $1 billion, payable over five years.
Ackman said he would instead support a narrower change to the tax code aimed at billionaires who live off stock-backed loans, arguing that the tax code should be tightened so that ultra-rich individuals cannot live tax-free by borrowing against stocks instead of selling them.
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Last month, California Governor Gavin Newsom said he opposed the proposed billionaires tax, while warning of panic over the measure. (Justin Sullivan/Getty Images)
He said a simple solution would be to tax large personal loans above a person’s initial investment as if the stocks had been sold, closing what he described as a loophole used by many ultra-wealthy individuals.
“You shouldn’t be able to live and spend like a billionaire without paying taxes,” Ackman said.
Ackman’s post received support from fellow billionaire Mark Cuban, who reposted it, writing, “Okay.”
Amanda Macias of Fox News contributed to this report.
