Sacks predicts a rush for the exits from California if the wealth tax gets on the ballot in April.
“If it gets on the ballot, you know, again, we'll know in just a few months, there's gonna be a huge freak out.”
Sacks explains supervoting provision would turn 5% wealth tax into 25% for founders like Larry and Sergei.
“So the 5% tax for them is more like a 25% tax of all their net worth.”
Sacks characterizes California wealth tax as unprecedented asset seizure, not a tax, targeting all assets regardless of realization.
“This is an asset seizure. This is saying that we're gonna take 5% of everything you own, whether you're paid up on your taxes or not, whether your assets are realized or unrealized.”
Sacks claims roughly a trillion dollars of net worth has left California due to wealth tax threat.
“And now roughly a trillion dollars of net worth of has left the state. That is gonna put a huge hole in the tax collections of the state.”
Sacks warns California wealth tax is not one-time but first-time, establishing precedent for repeated asset seizures.
“It's it's different. It's not a one time. It's a first time. And if they get away with it, there'll be a second time and a third time.”