Agency founder and CEO Mauricio Umansky joins Varney & Co. to warn that California’s rent control and wealth taxes are driving out builders, investors and middle-class families.
Billionaire hedge fund manager Bill Ackman has stirred things up California’s proposed wealth tax as a potential government seizure of private property, arguing that such taxes have failed everywhere they have been tried.
Ackman, who is not a California resident, turned to X earlier this week to criticize the proposal that, if approved by voters, would impose a one-time 5% tax on California residents’ assets worth more than $1 billion.
“I oppose wealth taxes because they essentially represent an expropriation of private property and have many unintended and negative consequences that have occurred in every country that has implemented such a tax,” Ackman said in the post.
The proposal comes as California faces a projected $18 billion deficit for the 2026-2027 budget year, according to the state Legislative Analyst’s Office.
Billionaire hedge fund manager Bill Ackman has dismissed California’s proposed wealth tax as a potential government seizure of private property, arguing that such taxes have failed everywhere they have been tried. (Patrick Fallon/Bloomberg/Getty Images)
“As for California’s budget problem, the problem is not a lack of tax revenue. The problem is how the money is spent,” Ackman wrote.
Days earlier, Ackman said “California is on a path to self-destruction” amid news that some tech billionaires are considering leaving the state if the proposal goes through.
Billionaire tech investor Peter Thiel and Google co-founder Larry Page were weighing whether to cut ties with California over the proposed ballot measure, according to a New York Times report report.
“Hollywood is already a success and now its most productive entrepreneurs will leave and spend their tax revenue and job creation elsewhere,” Ackman said. “And then the Democrats highlight California’s government. Gavin Newsom as a great leader. Crazy.”
Last month, California Governor Gavin Newsom said he opposed the proposed billionaires tax while warning of panic over the measure.
TECH BILLIONAIRES THREATEN TO EXPLODE CALIFORNIA OVER PROPOSED 5% NETWORK TAX
A view of the California State Capitol building in Sacramento, California. (Arturo Holmes/Getty Images for National Urban League/Getty Images)
Supporters say the wealth tax revenue could help offset potential federal cuts to health care and say the measure is backed by the Service Employees International Union – United Healthcare Workers West.
The measure remains under consideration for the November statewide ballot and would retroactively apply to anyone who lived in California as of Jan. 1, 2026.
Under the proposal, a resident with $20 billion in wealth would owe a one-time tax of $1 billion on that date, payable over five years.
Ackman said he would instead support a narrower tax code change aimed at billionaires who live on equity-backed loans. tax code should be tightened so that ultra-rich individuals cannot live tax-free by borrowing against stocks instead of selling them.
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Last month, California Governor Gavin Newsom said he opposed the proposed billionaires tax while warning of panic over the measure. (Justin Sullivan/Getty Images)
He said a simple solution would be to tax large personal loans above a person’s original investment as if the shares had been sold, closing a loophole used by many ultra-rich individuals.
“You shouldn’t be able to live and spend like a billionaire and not have to pay taxes,” Ackman said.
Ackman’s post received support from fellow billionaire Mark Cuban, who reposted it and wrote, “Agreed.”
