Bill Ackman criticizes California’s wealth tax plan, says it will drive jobs, drain money
Agency founder and CEO Mauricio Umansky joins Varney & Co. to warn that California’s rent controls and property taxes are driving away builders, investors and middle-class families.
Billionaire hedge fund manager Bill Ackman has criticized California’s proposed wealth tax as a possible government confiscation of private property, saying such taxes have failed everywhere they have been tried.
Ackman, who is not a California resident, took to X earlier this week to criticize the proposal, if approved by voters, that would impose a one-time 5% tax on California residents’ assets worth more than $1 billion.
“I oppose the wealth tax because it represents a confiscation of personal property and has many unintended and negative consequences that have occurred in every country that has instituted such a tax,” Ackman said in the post.
The proposal comes as California faces an $18 billion deficit in the 2026-27 fiscal year, according to the state Legislative Analyst’s Office.
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Billionaire hedge fund manager Bill Ackman has criticized California’s proposed wealth tax as a possible government confiscation of private property, saying such taxes have failed everywhere they have been tried. (Photos by Patrick Fallon/Bloomberg/Getty)
“Regarding California’s budget crisis, the issue is not a lack of tax money. The problem is how the money is spent,” Ackman wrote.
In recent days, Ackman said that “California is on a path to self-destruction” amid reports that some tech billionaires were considering leaving the state if the proposal were to move forward.
Billionaire tech investor Peter Thiel and Google co-founder Larry Page have been considering whether to cut ties with California over a proposed ballot measure, according to a New York Times report.
“Hollywood has already started to do well and now the most productive entrepreneurs will leave their tax dollars and create jobs elsewhere,” said Ackman. “And the Democrats are going to highlight Gov. Gavin Newsom as a great leader. He’s crazy.”
Last month, California Gov. Gavin Newsom said he opposed the proposed tax on billionaires, while warning of fears over the move.
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View of the California state capitol building in Sacramento, California. (Arturo Holmes/Getty Images for the National Urban League / Getty Images)
Proponents say wealth tax money could help reduce potential federal funding for health care and say the measure is supported by the Service Employees International Union-United Healthcare Workers West.
The measure is still being considered for the November statewide ballot and would apply retroactively to anyone who lived in California as of Jan. 1. 2026.
Under the proposal, a citizen with $20 billion in assets on that date would owe a one-time tax of $1 billion, payable over five years.
Ackman said he would instead support a reform of the tax code aimed at billionaires living off stock loans, and said the tax code should be tightened so the super-rich can live tax-free by borrowing from stocks instead of selling them.
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Last month, California Gov. Gavin Newsom said he opposed the proposed tax on billionaires, while warning of fears over the move. (Justin Sullivan/Getty Images)
He said the easiest thing would be to charge a tax on the amount of money borrowed in addition to what a person invested as if the stock had been sold, to close what he described as a loophole used by many very rich people.
“One should not be able to live and spend like a millionaire and not pay taxes,” said Ackman.
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Ackman’s post received support from billionaire Mark Cuban, who echoed it, writing, “I agree.”
Amanda Macias of Fox News contributed to this report.
