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.

[Boo1]

50. Most of those people

Are going to find a reason to not vote for the Democrat anyway. They always do.

[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

[Jmb 4 Harris-Walz]

71. Is it 1 or 5%? Either way, they can afford it, just curious which is correct?

Looked it up… It’s 5% on their wealth OVER $1 billion — affects approximately 200 current California residents. On the plus side of things, if they left, their mansions could be demolished to make way for housing the masses could more easily afford.

[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

[MichMan]

43. I keep hearing that they don't pay any taxes anyway

[GiqueCee]

58. These entitled assholes...

... don't pay any taxes to speak of, and contribute nothing "to the greater good" because they all think the Sun shines out of Ayn Rand's dead ass, and she hated altruism in any and all forms. They celebrate her pathological selfishness, so why should we despair if the leave?
To the best of my knowledge, there isn't a Bezos wing of any hospital; there isn't Musk Fund for anything except Musk, so fuck 'em sideways and never let them back in the country again.

[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.

[MichMan]

38. It could probably get renewed every 5 years

[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.

[pcdb]

48. Are you sure about that?

The top 1% of income earners contribute about 39% of state tax revenue. If they all left, California would be screwed.

[DiverDave]

61. They don't pay

A dime in taxes.
The fact is, they get REBATES.

[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.

[Jmb 4 Harris-Walz]

73. Totally agree with you, however, our inept president would never allow it.

[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.

[Hassin Bin Sober]

46. Spiro is a scumbag

He did get Alec Baldwin off regarding the politically motivated murder charges.

But he’s gone up against Mark Bankston (the guy who train wrecked Alex Jones for $1billion) on some defamation cases and made a complete ass of himself.

[hunter]

35. Silly billionaires.

You can check out any time you like, but you can never leave.

[bluestarone]

36. California will be better off when these leeches leave.

To HELL with them!!

[jonstl08]

37. Not a good idea

I know this is a minority opinion in this thread but I think this is the wrong approach. They should at the federal level go after the tax avoidance schemes these billionaire use as tax shelters such as taking out loans on their assets such as stocks. Then using the dividends (if qualified) received to pay off the loans. You pay a lower rate of tax on qualified dividends plus the interest on the loans may be tax deductible.

[OC375]

39. Of course they will?

It's a global economy now, and we collectively optimized wealth over the last several decades to be mobile and easy to convert.

These initiatives only really work if everyone does it (no safe haven for you or your $$$ to realistically go to), or people are restrained in moving themselves and/or what they possess (you and your $$$ just plain can't leave, or you can keep more $$$ if you stay than go).

Billionaires and even lowly multi-millionaires have a surplus of smart people from around the planet, all competing with each other to be ones who are paid to preserve and protect their wealth.

California is just one of many really beautiful, exceptional places on the Earth where wealth has recently concentrated, and wealth is portable, so it will probably just be courted and incentivized to move elsewhere, and likely grow when it does...

I don't have an answer, but I doubt this achieves what it intends to do. It's certainly leaning in a better direction than the other guys would go with it, I'll give it that.

[kwolf68]

40. 50 million dollars one time

Out of one billion

Is literally nothing to these people.

This mindset is malignant and often precedes societal revolution by the common man

[LostOne4Ever]

41. So California will lose the tax money of people who don't pay taxes?

So California will lose the tax money of people who don’t pay taxes?

I don’t see the downside. The wealth leeches leave and prices on housing goes down. Win-win.

[TheRickles]

42. Massachusetts was warned that the wealthy would flee if a wealth tax was instituted.

But it has worked out fine since its passage in 2022, with billions of dollars more now available for the public good each year, and actually more ultra-wealthy living in MA since it passed.

https://www.nbcboston.com/news/politics/data-shows-mass-is-home-to-more-millionaires-despite-new-surtax-according-to-advocates/3698430/|

[MichMan]

44. How will the government determine how much they owe?

Is there a mechanism to calculate the net worth of every California taxpayer?

[Buddyzbuddy]

45. The low cost of living has never been a reason to live in California.

Pay up or shut up. Having wealth is a privilege. It's way past time to pay for that privilege.

[BoomaofBandM]

47. I hope they don't come to my state.

[Luciferous]

49. Can they please move out of the US altogether?

[Scrivener7]

51. Well, that's a good thing, isn't it?

[bucolic_frolic]

52. Where they gonna move? Alabammie, for the lifestyle, right?

[SSJVegeta]

53. Lol like how all the billionaires said theyll leave MA after their progreesive tax was passed?

Give me a break.

[Intractable]

54. Why are they in CA to begin with? Because they like it there. Maybe it's the weather.

I'll bet that most billionaires won't relocate over this.

[Jmb 4 Harris-Walz]

72. If they're willing to brave the threats of fire, earthquakes, floods, coastal erosion, etc., they'll leave over a

5% tax on their wealth OVER $1 billion? Poppycock! They’d have to spend as much money rebuilding their massive estates elsewhere. They won’t be leaving anytime soon!

[unblock]

55. Billionaires will not ignore an entire economy as large as California.

They will invest where there is money to be made, and it's idiotic to think they won't invest in the largest state in the union, about 10% of the entire American population, an economy larger than most countries.

They're just whining about a potential 1% wealth tax and trying to throw their weight around.

[MichMan]

66. Doesn't mean they have to live there to have investments

[unblock]

69. Who cares if they leave? Their money is their only leverage.

Many of these billionaires travel a ton anyway and "live" all over the place.

[lame54]

56. There Goes John Galt

[no_hypocrisy]

57. NYC Billionaires said the same thing if Zoltan Mamdani were to be elected Mayor.

Exhibit One: John Catsimatidis, owner of Gristedes supermarkets, Red Apple Media, and WABC radio station.

"Cats" repeatedly and vociferously went on the record that he would sell everything and move out of New York City.

https://www.newsweek.com/supermarket-billionaire-threatens-new-york-exit-after-mamdani-win-11015709

https://www.forbes.com/sites/martinadilicosa/2025/11/07/supermarket-billionaire-john-catsimatidis-threatens-to-cut-workforce-move-to-florida-after-mamdanis-win/

Well . . . . . Zohran Mamdani’s biggest hater John Catsimatidis now calling for top NYC conservatives to work with incoming socialist mayor. What do you suppose happened . . . . . ??
https://nypost.com/2025/11/17/us-news/zohran-mamdanis-biggest-hater-john-catsimatidis-now-calling-for-top-nyc-conservatives-to-work-with-incoming-socialist-mayor/

[CoopersDad]

65. You just nailed it.

We all underestimated Mamdan's strength and I hope we'll insist on more progressive forward-looking representation because meeting the other side half way has only ever failed.

[regnaD kciN]

59. Is that a threat or a promise...?

[W_HAMILTON]

60. What a terrible headline -- someone trying to take down Newsom?

The way the headline was written, you can guarantee that many people will take it as Newsom defending billionaires and arguing against the wealth tax, when it's actually some attorney no one knows.

[WarGamer]

62. I'll still vote YES... just for s&g

[Patton French]

63. Tax evasion is illegal.

NT

[thought crime]

64. This is just Billionaires leveraging their enormous privilege

They should be taxed out of existence, immediately.

[Takket]

67. if every state did this, then where would they move?

[maxrandb]

68. "Right after I got here, i ordered some spaghetti with marinara and got egg noodles with ketchup"

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