CEO Mauricio Umansky Voices Concern Over California’s Wealth Tax Plans
The Agency founder and CEO Mauricio Umansky warns that California’s rent control and wealth taxes are forcing builders, investors and middle-class families to leave the state.
Bill Ackman Criticizes Proposed Wealth Tax
Billionaire hedge fund manager Bill Ackman criticizes California’s proposed wealth tax, viewing it as potential government seizure of private property. He argues that such taxes have historically failed in countries where they have been implemented.
Ackman, who is not a California resident, took to X to voice his opposition to the proposal. If approved by voters, this would impose a one-time 5% tax on the assets of California residents with a net worth exceeding $1 billion.
“I am opposed to wealth taxes because they effectively represent an expropriation of private property and have many unintended and negative consequences that have occurred in every country that has launched such a tax,” Ackman stated.
California’s Projected Financial Deficit
The proposal comes as California faces a projected $18 billion deficit for fiscal year 2026-27, according to the state’s Legislative Analyst’s Office.
Days earlier, Ackman noted that “California is on a path to self-destruction” amid news that some tech billionaires were considering leaving the state if the proposal were to move forward.
Tech Billionaires May Depart California
Tech billionaires including Peter Thiel and Google co-founder Larry Page are reported to be considering cutting ties with California over the proposed wealth tax.
“Hollywood is already toast and now the most productive entrepreneurs will leave, taking their tax revenues and job creation elsewhere,” Ackman warned.
Gov. Gavin Newsom’s Stance on Wealth Tax
Last month, California Gov. Gavin Newsom expressed his opposition to the proposed billionaire tax, while cautioning against panic over the measure.
Service Employees International Union–United Healthcare Workers West Backs Wealth Tax
Supporters of the wealth tax, including the Service Employees International Union–United Healthcare Workers West, say the revenue could help offset potential federal funding cuts for health care.
Ackman’s Alternative Tax Proposal
Rather than a wealth tax, Ackman supports a narrower tax-code change aimed at billionaires who live off stock-backed loans. He argues that the tax code should be tightened so ultra-wealthy individuals cannot live tax-free by borrowing against stock instead of selling it.
Ackman suggests that large personal loans above an individual’s original investment should be taxed as if the stock had been sold, closing what he describes as a loophole that benefits the ultra-wealthy.
Support from Mark Cuban
Ackman’s post garnered support from fellow billionaire Mark Cuban, who reposted it with the simple affirmation, “Agree.”
Additional reporting by Amanda Macias of Fox News.
Read More US Economic News