On Friday, hedge fund billionaire Bill Ackman sounded the alarm over California’s economic future as reports suggest some of the state’s wealthiest residents are considering leaving amid a proposed tax targeting billionaires.<\/p>\n
The Pershing Square Capital Management CEO criticized California’s political leadership, arguing that aggressive tax policies are pushing out entrepreneurs who drive jobs and economic growth.<\/p>\n
In a post on X, Ackman said California is “on a path to self-destruction,” warning that Hollywood has already declined and that the state now risks losing its most productive business leaders.<\/p>\n
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He also aimed at Democrats for continuing to praise Gov. Gavin Newsom (D-Calif.), calling that stance “crazy” given what he described as California’s deteriorating business climate.<\/p>\n
California is on a path to self-destruction. Hollywood is already toast and now the most productive entrepreneurs will leave taking their tax revenues and job creation elsewhere. <\/p>\n
And then the Democrats highlight @CAgovernor<\/a> Newsom as a great leader. Crazy. https:\/\/t.co\/bFyLhARrNn<\/a><\/p>\n Ackman’s comments followed a New York Times report<\/a> that billionaires, including tech investor Peter Thiel and Google co-founder Larry Page, are considering cutting back or ending their ties to California by the end of the year.<\/p>\n Trending: Americans With a Financial Plan Can 4X Their Wealth \u2014 Get Your Personalized Plan from a CFP Pro<\/a><\/p>\n According to people familiar with the discussions, Thiel has explored opening an office for his investment firm in another state and spending more time outside California.<\/p>\n Page, a longtime Palo Alto resident, has discussed leaving the state entirely, and companies linked to him recently filed incorporation documents in Florida.<\/p>\n The moves are reportedly driven by a proposed ballot initiative backed by a California health care union that would impose a wealth tax on residents worth more than $1 billion.<\/p>\n The measure would tax 5% of a billionaire’s assets<\/a> and would apply retroactively to individuals living in California as of Jan. 1, 2026. Those affected would be allowed to pay the tax over five years.<\/p>\n If approved, individuals with $20 billion in assets could face a one-time tax bill of $1 billion. Based on current estimates, Page’s tax liability could exceed $12 billion, while Thiel’s could top $1 billion.<\/p>\n See Also: Buffett’s Secret to Wealth? Private Real Estate\u2014Get Institutional Access Yourself<\/a><\/p>\n Earlier this month, Newsom accused President Donald Trump of pursuing an economic agenda that benefits billionaires<\/a> while leaving many working Americans financially vulnerable, intensifying an ideological divide as both men look toward 2028.<\/p>\n Trump and his allies reject that characterization, saying the administration’s policies have strengthened the broader economy.<\/p>\n They point to continued GDP growth, cooling inflation and record highs in the stock market. In a November interview, Trump said retirement accounts have surged in value, arguing that market gains are reaching working families through 401(k) plans<\/a>.<\/p>\n Read Next: From Moxy Hotels to $12B in Real Estate \u2014 The Firm Behind NYC’s Trendiest Properties Is Letting Individual Investors In.<\/a><\/p>\n Image via Shutterstock<\/p>\n Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights<\/a> that can set you ahead in today’s competitive market.<\/p>\n Get the latest stock analysis from Benzinga:<\/p>\n This article Bill Ackman Warns California Is ‘On A Path To Self-Destruction’ As Larry Page, Peter Thiel Weigh Exiting State Over Proposed Billionaire Wealth Tax<\/a> originally appeared on Benzinga.com<\/a><\/p>\n