California Billionaire Tax Act 2026: David Sacks Slams 5% Levy as "Asset Seizure"

"This is not a tax, this is an asset seizure." That's the verdict from David Sacks, President Trump’s AI and crypto czar, regarding California’s proposed wealth tax. Speaking from the World Economic Forum in Davos, Sacks warned that the legislation represents a "scary direction" for the U.S. economy.

What the California Billionaire Tax Act 2026 Means for the Ultra-Rich

The Billionaire Tax Act aims to impose a one-time 5% tax on the total wealth of residents with a net worth of $1 billion or more. If passed, the levy would apply to those residing in California as of January 1, 2026. While proponents call it a one-time measure, Sacks argues it's just the "first time" of many.

Sacks, who recently relocated to Texas after three decades in the Golden State, believes the bill has a high chance of passing. He criticized Governor Gavin Newsom for failing to oppose the bill early enough, claiming that $1 trillion in net worth has already fled the state, leaving a massive hole in tax collections.

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Stay or Go? The Great Billionaire Divide

Despite the looming tax, some of the world's most influential CEOs aren't packing their bags. Nvidia's Jensen Huang, OpenAI's Sam Altman, and Airbnb CEO Brian Chesky have all signaled their intent to stay. Sacks notes that these large companies benefit from California's powerful "network effect," which keeps them anchored.

However, smaller, more flexible businesses are opting to leave. Sacks suggests that progressive lawmakers are betting on the state's indispensability, but warns that this strategy might backfire as more mobile capital seeks tax-friendly jurisdictions like Texas or Florida.