Peter Schiff says California’s proposed 5% billionaire wealth tax could drive a “mass exodus” that hits tech founders, citing Zuckerberg

Economist Peter Schiff warned that California’s proposed “billionaire wealth tax” could trigger a mass departure of ultra-wealthy entrepreneurs, a move he said would drain talent and capital from the state’s business ecosystem.

Schiff’s argument, reported by Yahoo Finance, centers on a proposal that would impose a 5% tax on billionaire wealth. In his view, taxes calibrated to net worth rather than income create incentives for wealthy residents to reconsider where they live and build companies, even when day-to-day business activity does not change.

In the Yahoo Finance report, Schiff pointed to Meta Platforms Inc. CEO Mark Zuckerberg as an example of a tech founder whose presence in California could become politically vulnerable if voters approve the tax. The report frames Zuckerberg as symbolic of the broader category of high-net-worth entrepreneurs who, Schiff believes, could be motivated to relocate.

The dispute is not only about tax rates, but about how a wealth tax changes the calculus for residents who hold large stakes in fast-growing companies. For founders and investors whose fortunes are tied to company valuations, a wealth tax can be costly in years when income from dividends or other cash sources does not rise at the same pace as the underlying asset value.

Meta itself was not described in the Yahoo Finance report as taking a position on the proposal. The story also did not indicate that the company disclosed any direct plan to respond, lobby, or adjust its operations in California if the tax were adopted.

More broadly, California’s tech sector has long attracted capital and founder concentration, and policy changes aimed at wealth rather than earnings can become a flashpoint for debates over economic mobility and the location of high-value assets. Supporters of wealth taxes generally argue they target extreme concentration and raise revenue from those with the greatest capacity to pay, while critics argue they can distort incentives and encourage relocation.

A caveat in the current public discussion is that the Yahoo Finance report attributes the “mass exodus” warning to Schiff but does not provide evidence of how many people would actually leave, how quickly any relocation might occur, or what the tax’s final design would require in practice. The report also does not quantify potential revenue, estimate compliance costs, or specify any enforcement details that could alter the behavior Schiff predicts.

What to watch next is whether California lawmakers and voters clarify the proposal’s mechanics, including how the tax would be calculated and administered, and whether prominent Silicon Valley figures or major employers publicly respond. Equally important will be any polling, economic modeling, or public statements that move the debate from prediction to measurable assumptions.