Billionaire investor Bill Ackman fiercely criticized a new tax proposal. He specifically targeted a potential California destructive wealth tax. This destructive wealth tax would apply to state residents. It mandates a one-time five percent levy on billionaires. Ackman argued this tax represents a property seizure. He made these sharp remarks in a recent social media post. The activist investor does not currently live in California. He claimed such taxes fail everywhere governments try them. This destructive wealth tax proposal aims to fix a budget deficit. California faces an eighteen billion dollar shortfall soon.
Therefore, Ackman firmly stated the problem involves spending not revenue. The government mismanages funds rather than needing more he said. Several prominent tech billionaires may leave the state consequently. Peter Thiel and Larry Page are reportedly considering an exit. Ackman warned California is on a path toward self-destruction. However, Hollywood is already toast he remarked rather bluntly. Productive entrepreneurs will take jobs and revenues elsewhere. He expressed disbelief over Governor Newsom’s praised leadership. Newsom himself actually opposes this specific tax proposal. The Governor still cautioned against panic over the measure.
Supporters argue the tax could protect vital healthcare funding. A major healthcare workers union backs the ballot initiative. Moreover, the proposal would apply retroactively to early 2026. A resident with twenty billion dollars would owe one billion. That massive payment would be spread across five years. Ackman suggested an alternative tax-code change instead. He would close a specific loophole for the ultra-wealthy. Some billionaires live tax-free using stock-backed loans currently. They borrow against shares instead of selling them outright. Ackman believes the law should tax those large loans.
This simple fix would ensure billionaires pay some tax. One cannot live lavishly and pay nothing he stated. Fellow billionaire Mark Cuban quickly agreed with his position. Cuban reposted Ackman’s argument with a simple agreement. The wealth tax measure remains under consideration for November. Voters will ultimately decide its fate later this year. The debate highlights growing tensions over tax policy. Critics fear severe economic consequences from the plan. The potential for significant capital flight seems very real. This destructive wealth tax continues generating intense national debate.
