Trump AI Czar Criticizes California Billionaire Tax
David Sacks, President Trump’s AI and crypto czar, called California’s proposed wealth tax a “scary direction” for the U.S. during an interview at the World Economic Forum in Davos.
“This is not a tax; this is an asset seizure. “Never been anything like this before in American history.”
Billionaire Tax Act Overview
The Billionaire Tax Act is gathering signatures to appear on the November ballot in California. It would levy a one-time 5% tax on residents with net worths of $1 billion or more, effective Jan. 1, 2026.
Sacks argued, “It’s not a one-time, it’s a first time. If they get away with it, there’ll be a second and third time. This starts a new form of asset seizure in the U.S.”
Potential Statewide Impact
Sacks, who moved to Texas after three decades in California, believes the tax could pass and set a precedent for other states. He criticized Gov. Gavin Newsom for delaying opposition, saying this has caused trillions in wealth to leave California and created a “huge hole” in tax revenue.
While large companies like Nvidia, OpenAI, and Airbnb plan to stay, Sacks said smaller businesses are leaving. “California’s network effect keeps large firms in the state, but smaller companies are more flexible,” he explained.
