California's Proposition 40 seeks to impose a one-time 5% wealth tax on the state's roughly 250 billionaires, potentially making it the world's first billionaire tax. The measure enjoys strong support in Silicon Valley, where Representative Ro Khanna champions it despite losing tech billionaire donors. Khanna argues the tax would help blunt anger over economic inequality, telling billionaires: "Read the room.
Mamdani or the next generation want your heads. They are coming with pitchforks." Billionaire Michael Moritz, worth $8 billion, calls the tax "asset seizure" and predicts it would drive high earners away, hurting the very people it aims to help. He acknowledges inequality needs addressing but opposes the wealth tax, favoring closing loopholes instead.
Moritz, 72, warns California has "become a state that doesn't value success anymore.".
Source: New York Times Top Stories · Summarized by HeadlinesBriefing