Billionaire Bill Ackman withdrew support for Rep. Ro Khanna over his defense of a controversial California wealth tax proposal. Ackman cited a policy contradiction, warning of a potential exodus of tech titans like Peter Thiel and Larry Page due to the tax’s impact on entrepreneurship in California.

The tax proposed in California could levy up to 5% on the net worth of billionaires, leading to concerns about driving entrepreneurs and job creators out of the state. Ackman and venture capitalist Chamath Palihapitiya echoed worries that this aggressive taxation could stifle entrepreneurship and innovation.

Despite criticism, Rep. Ro Khanna remains steadfast in defending the wealth tax, arguing that Silicon Valley’s history and talent pool are more significant than individual billionaires. The dispute highlights a shift in economic philosophy and potential consequences for California’s business landscape.

In the financial markets, all three benchmark indices closed positively during the truncated Christmas week. The S&P 500, Dow Jones, and Nasdaq Composite saw gains, with year-to-date performances showing significant increases in stock values.

Looking ahead, the futures of Dow Jones, S&P 500, and Nasdaq 100 indices were mixed on Monday, indicating potential volatility in the markets. Investors are closely monitoring the impact of economic policies on business environments and stock performance in the coming weeks.

Read more at Yahoo Finance: Bill Ackman Blasts Ro Khanna For Defending Billionaire Tax: ‘Lost His Way’