Finance

CA wealth tax could cost hundreds of thousands of jobs, Altman warns

Josh Altman warned on Fox Business' Varney & Co. on Jan. 31, 2026 that California's proposed wealth tax could cost hundreds of thousands of jobs. He argues the plan—a one-time 5% levy on net worth over $1 billion, due in 2027 with a five-year payment window and nondeductible charges—could spur billionaires to relocate to lower-tax states. Altman also notes that seven billionaires he personally knows have already left California for states such as Nevada and Florida.

📅 February 01, 2026
⏱️ 2 min read
CA wealth tax could cost hundreds of thousands of jobs, Altman warns

Key Takeaways

  • Seven billionaires Altman personally knows have left California for states such as Nevada and Florida.
  • A one-time 5% wealth tax on net worth above $1 billion would be due in 2027 with a five-year payment period, plus nondeductible charges.
  • Nondeductible charges are cited by the Legislative Analyst’s Office as part of the tax proposal.
  • The claim relies on an interview and anonymous sources, with limited independent verification.

People Involved

  • Josh AltmanReal estate broker and TV personality

Entities Involved

  • California State GovernmentPolicy maker behind the wealth tax proposal
  • Fox Business NetworkNetwork that aired Altman's remarks on Varney & Co.
  • Legislative Analyst’s Office (LAO)State fiscal analysis agency citing nondeductible charges in tax proposals

MarketMoodz Analysis

For investors, a wealth tax that targets billionaires could alter where capital flows and where talent concentrates. If high-net-worth residents relocate, venture funding, luxury real estate activity, and related tax receipts could slow in California.

Historically, competitive tax climates have influenced where wealth and investment go. California’s proposed one-time levy—paired with nondeductible charges—adds complexity that could drive relocation and dampen investment beyond the direct revenue impact.

What to watch next: legislative fate of the proposal, any corroboration of Altman’s relocation claims, and any reactions from other states with lower tax burdens. Monitor early data on billionaire migration, venture funding, and housing demand to gauge the policy’s real-world effect on California’s growth trajectory.

Source: Original Article

Get AI-Powered Market Insights

Stay ahead of market-moving events with our real-time analysis and stock ratings.

Start Your Free Trial