Gavin Newsom warned that billionaires will 'permanently relocate' if California wealth tax passes

[CoopersDad]

Read the letter celebrity lawyer Alex Spiro wrote to Gavin Newsom, warning that his clients will 'permanently relocate' if California wealth tax passes

Jack Newsham,Madeline Berg

A proposed billionaire tax in California has the wealthy threatening to flee, according to a letter written by power lawyer Alex Spiro to Gov. Gavin Newsom.

In a December 11 letter that was obtained by Business Insider, Spiro lays out his opposition to the proposed tax on behalf of his clients, whom he calls "California residents who would be subject to the proposed Billionaire Tax Act."

"It will trigger an exodus of capital and innovation from California," Spiro wrote. "Our clients have made clear they will permanently relocate if subjected to this tax."

The measure proposes that California residents with assets exceeding $1 billion be subject to a one-time 5% tax on the value of their assets. If the proposal receives enough signatures, it will appear on the state ballot in November 2026. If passed, it would apply retroactively to all California residents as of January 1, 2026.

Among Sprio' clients are the Kardashians, Jay-Z, and Elon Musk

https://currently.att.yahoo.com/att/read-letter-celebrity-lawyer-alex-204649466.html

[Ocelot II]

1. Don't let the door slap you on the ass on your way out, parasites.

[SheltieLover]

27. You beat me to it

[Gore1FL]

2. I guess that will open housing for people who pay taxes. NT

[CousinIT]

3. Newsom's response should be:

"I welcome your hatred. Goodbye."

[dweller]

8. Newsom

While Newsom has said he is against the tax and would "fight" it, he would not have the ability to veto it if it were to pass as a ballot measure.

😐



✌🏻

[karin_sj]

23. Ugh

There are many things I like about Newsom, but not his over the top support for the tech industry.

[CousinIT]

26. Ugh.

I hope he doesn't run in 28, and if he does, he isn't the nominee.

People have numerous objections to some of his policies.

Me, I'm a "vote blue, no matter who" type, and have had to hold my nose, but MANY others are not.

[BannonsLiver]

30. Better get the nose clips ready.

[newdeal2]

4. They would have to move in the next day to avoid the retroactive tax?

I doubt this measure will hold up, at least in the way it is currently written. Also, why aren't his clients publicly speaking up if they're so proud of their position?

[ProudMNDemocrat]

5. The BILLIONAIRE Class have become the WHINER class.

1% tax on their immense wealth is NOT a fucking hardship!

Geez Louise!

[Stargazer99]

6. It is called greed

[EYESORE 9001]

20. I think they should whine louder and more publicly

The great unwashed masses will certainly understand and identify with their plight.

[Johonny]

22. They always have been

[multigraincracker]

7. Make it a National Law, save SS Law.

[SheltieLover]

28. Yes!

[Buns_of_Fire]

9. "So, what's the bad news?" nt

[Daigan]

10. Good Riddance! NT

[hlthe2b]

11. I honestly think a majority would gladly have the Kardashians (and of course, Musk) depart California...

I'd personally like all of the above to leave the US. I don't know who would take them and despite the obscene wealth in UAE (and UAE willingness to look the other way with re: to an Muslim sensitivities for the wealthiest among them in Dubai), I doubt they'd be too happy there either.

[C_U_L8R]

12. Contribute to the common good or goodbye.

Life’s too short to suffer selfish assholes.

[UpInArms]

13. Money hoarders

Can never share and never have enough for their tiny shriveled souls

ETA

They should be taxed out of existence

[Hugin]

14. "Sometimes the coppice needs to be cleared lest it becomes a hedgerow."

- said with my best Chauncey Gardiner voice.

[Initech]

15. Hey MAGA, it's not the immigrants who are ruining America! It's the billionaires!

[Lovie777]

16. Bye.. ....

[Jose Garcia]

17. The state of California's economists have projected that this tax would result in a net loss of revenue

[drmeow]

32. Link? nt

[Jose Garcia]

34. New York Times:

California’s Legislative Analyst’s Office and Department of Finance have estimated that the state “would collect tens of billions of dollars from the wealth tax” in onetime payments. But they added that state income tax revenues would also fall over the long term by hundreds of millions a year if billionaires decided to move away.

A spokesman for Mr. Newsom said he continued to oppose “state-level wealth taxes” because they encouraged those who would be affected to move to another state.

https://www.nytimes.com/2025/12/26/technology/california-wealth-tax-page-thiel.html?smid=nytcore-ios-share

[Johonny]

18. Feels like a poison pill measure designed to get GOP

Turnout up so they hold onto a few seats . . .

One time tax? Sounds stupid and counter productive.

[Blue Full Moon]

19. They are his peeps though

[karin_sj]

21. Good riddance, assholes!

I really don't think it will be the exodus that this idiot is predicting, and if those particular billionaires leave, it'll be good for California. Maybe they'll stop trying to create their own private "tech friendly" cities here when the current resident don't want it. I'm so sick of their greedy, selfish ways. They have more money than most of us can even imagine and yet they are never satisfied. F 'em!

[spanone]

24. California will be better without them.

Eff 'em all.

[intheflow]

25. They won't leave.

I mean, maybe Thiel and a few others, but it certainly won't be a mass exodus. Where they gonna go? You think the majority of Tech Bros who make under a billion are going to want to relocate to Texas or rural Kansas or cold and snowy NYC, with its socialist mayor-elect? They could move to another country, but then their products could then be subject to shitty tarriffs. Maybe they could move to Hawaii, but that would drive overall production costs up. The US Virgin Islands and Puerto Rico will have too many black and brown people for them, and of course, who wants to relocate their business to Hurricane Row? It's empty bullying, if you ask me.

[Retrograde]

29. As long as they take Zuckerberg with them

who is building a 12 (at last count) house compound in my town.

[walkingman]

31. Wealth Taxes should be at the Federal level not State level

Arguments for nationalizing wealth taxes:

1. Preventing "Millionaire Flight": State-level wealth taxes may cause top talent and entrepreneurs to move to less regressive states, making national policy more effective.
2. Addressing Economic Inequality: Federal taxes are seen as a necessary tool for distributive justice to curb extreme wealth concentration.
3.Targeting Unrealized Gains: A national policy could address taxes on paper wealth or assets, which are difficult to tax effectively at a state level.
4. Uniformity: Federal, rather than state, rules would eliminate loopholes for the ultra-rich.

[haele]

33. Spiro is a F'ing con man.

His job as he sees it is to maximize wealth for his clients so he can scrape more fees off the top.
Most of his clients wouldn't see any difference between a 1% wealth tax and the fees he would have charged them to "invest" that 1%.
Not only that, they won't realize any benefit from that 1% he moved around as an investment for them -

" Oh, sorry - market correction, you lost $2m last quarter, but you're going to make it back up and then some if I move you over to this fund - another $100k, please..."

With that $1M a year per $1B tax -er - investment in California, they can invest that money in things that make the state a better place to live and do business in.

Instead of just further lining the pockets of already wealthy money managers.