David Sacks calls California wealth tax 'an asset seizure,' says it's 'not a one-time, it's a first time'

"AI czar David Sacks said California is taking a potentially "scary direction" if voters approve a wealth tax on billionaires. "This is not a tax, this is an asset seizure," Sacks told CNBC on the sidelines of the World Economic Forum in Davos. Sacks, a longtime venture capitalist, is just one of the many voices in the tech industry who have denounced "The Billionaire Act." Craft Ventures, the firm Sacks cofounded with Bill Lee, previously announced that Sacks had relocated to the Austin area in December."

""It's not a one-time. It's a first time," he said. "And if they get away with it, there'll be a second time and a third time. And this will be the beginning of something very new and different in this country." If passed, California residents with a net worth of over $1.1 billion would face a one-time tax totalling 5% of their assets. (Residents with a net worth between $1 billion and $1.1 billion would pay a smaller tax.)"

"Google cofounders Larry Page and Sergey Brin moved entities tied to them out of California ahead of the deadline. Other billionaires, such as Nvidia CEO Jensen Huang, have said they won't leave the state. The tax has yet to be approved. Supporters are still gathering enough signatures to put the issue before California voters this November. If they meet that threshold, a majority of voters would then need to support it. It's likely legal challenges would ensue as well."

David Sacks warned that a proposed California wealth tax on billionaires could represent an asset seizure and lead the state in a "scary direction." He characterized the measure as a precedent that could be repeated if allowed. The proposal would impose a one-time 5% tax on residents with net worths over $1.1 billion, with smaller levies for those between $1 billion and $1.1 billion. Some wealthy individuals have moved assets or entities out of California ahead of the deadline, while others say they will remain. Supporters are gathering signatures to place the measure on the November ballot and legal challenges are expected.

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