- - Bill Ackman Warns California Is 'On A Path To Self-Destruction' As Larry Page, Peter Thiel Weigh Exiting State Over Proposed Billionaire Wealth Tax

Ananya GairolaDecember 29, 2025 at 5:00 AM

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Bill Ackman Warns California Is 'On A Path To Self-Destruction' As Larry Page, Peter Thiel Weigh Exiting State Over Proposed Billionaire Wealth Tax

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.

Ackman Slams California Leadership And Tax Policy

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.

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.

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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.

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. And then the Democrats highlight @CAgovernor Newsom as a great leader. Crazy. https://t.co/bFyLhARrNn

— Bill Ackman (@BillAckman) December 27, 2025

Billionaires Reportedly Explore Reducing Ties To California

Ackman's comments followed a New York Times report 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.

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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.

Page, a longtime Palo Alto resident, has discussed leaving the state entirely, and companies linked to him recently filed incorporation documents in Florida.

Proposed Wealth Tax Targets Ultra-Wealthy Residents

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.

The measure would tax 5% of a billionaire's assets 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.

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.

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Gavin Newsom Blasts Trump's Economic Agenda

Earlier this month, Newsom accused President Donald Trump of pursuing an economic agenda that benefits billionaires while leaving many working Americans financially vulnerable, intensifying an ideological divide as both men look toward 2028.

Trump and his allies reject that characterization, saying the administration's policies have strengthened the broader economy.

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.

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