Venture capitalist Chamath Palihapitiya warns that California’s proposed billionaire tax is causing ultra-wealthy residents to flee the state, potentially worsening the budget deficit. Individuals with a combined net worth of $500 billion have already left California to avoid the asset seizure-style levy. Palihapitiya argues that losing high-net-worth residents will lead to a larger budget deficit, forcing lawmakers to increase borrowing or raise taxes on ordinary residents. The tax proposal unfairly targets unrealized and illiquid wealth, particularly affecting startup founders who may struggle to pay millions in cash based on paper equity.

Read more at Yahoo Finance: Chamath Palihapitiya Says People Worth $500 Billion ‘Scrambled And Left California’ Over Billionaire Tax, Warns That It Will Deepen Budget Deficit