California’s proposed billionaire wealth tax faces backlash as wealthy residents flee the state, including Google co-founders Sergey Brin and Larry Page. Venture capitalist Chamath Palihapitiya warns of dire consequences, predicting billions in lost tax revenue and jobs. The tax aims to impose a one-time 5% levy on billionaires’ assets, excluding real estate.
While the California attorney general estimates the tax could generate billions in revenue, Palihapitiya argues the state will face a budget crisis as billionaires leave. High-profile figures like Peter Thiel are already relocating assets, with a January 1, 2026 deadline looming to avoid the tax. The tax targets billionaires with assets like businesses, securities, and art, excluding real estate.
Critics argue that the ultra-rich do not pay their fair share of taxes due to loopholes in the system. The proposed tax aims to target about 200 individuals who collectively hold $2 trillion in wealth. Wealthy individuals often build assets that grow in value but are taxed at lower rates than regular income. Some experts advise strategies like borrowing against assets to avoid triggering taxes on gains.
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Read more at Yahoo Finance: Billionaire ‘exodus’ sees $1T in wealth exit California, warns famed investor. Build wealth like the uber rich, anywhere