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Chamath (@chamath) posted on 2026-06-28 that California’s Property Seizure…

Brief

Chamath (@chamath) warns California’s Property Seizure Act—marketed as “The Billionaire Tax”—is on the ballot and would, he claims, require a 5% annual cash seizure of all tangible and intangible property. He predicts decade-long litigation likely to fail in the Supreme Court, an exodus of business builders, large revenue losses, deeper deficits, higher taxes on middle-class Californians, and possible near-bankruptcy and pension resets.

Why it matters

Chamath (@chamath) posted on 2026-06-28 that California’s Property Seizure Act—marketed as “The Billionaire Tax”—is now on the ballot and links a 4-minute Hoover Institution video (piped.video/x6k4W5Qzg8U) explaining it.

Key details

  • He claims the measure would force a 5% annual cash seizure of all tangible and intangible property, predicts decade-long litigation likely to reach the Supreme Court and fail, and warns this will drive away business builders, cause large revenue losses, deepen California’s budget hole, raise taxes on everyone (especially the middle class), and risk near-bankruptcy and pension retrades.
Source evidence

California’s Property Seizure Act - called “The Billionaire Tax” to fool voters is now on the ballot. @HooverInst has a short 4min video breaking it down.

piped.video/x6k4W5Qzg8U?is=kvsz…

You should vote for this if you are comfortable handing over 5%, in cash, of all your tangible and intangible property every year. You should vote no if you don’t want to do that.

If it passes, the remaining Billionaires will sue. This will take a decade to meander through the courts and will find its way to the Supreme Court where the odds it survives are low.

But in that intervening decade, far fewer business builders will want to bet on California and will focus on building in other states.

This will drive a large loss of revenue that will make California’s budget hole even worse. The only solution there is more borrowing and higher taxes on EVERYONE including those that voted NO. This will particularly impact the middle class who are Californias largest revenue source.

The only path out of an avoidable budget spiral is a hard landing and structural reset. Sadly, a hard landing will mean a near-miss with California bankruptcy and, more punitively, a reset/retrade of state pensions with California lenders to not come collect.

If you aren’t sure or don’t believe me, vote YES and bookmark this post. A decade from now you can tell me I was wrong or give me the opportunity to lord over your stupidity, jealousy and gullibility for voting YES when I am proven right.

Link

The Billionaire Wealth Tax: A Recipe for Economic Disaster | Joshua...

A billionaire wealth tax, proposed as a straightforward, one-time s...
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