Tech titans leave California after new wealth tax proposal

Speakers

Brian Sullivan — Anchor/Host

Robert Frank — CNBC Wealth Editor

Bill Ackman — CEO, Pershing Square Capital (Quoted via X/Twitter)

Summary

Mark Zuckerberg purchased a $150M estate in Indian Creek, Florida, joining Jeff Bezos and Carl Icahn, signaling a potential exit from California.
California is proposing a 5% "wealth tax" on billionaires. While it faces significant hurdles (signatures, voter majority, court challenges), the mere threat is triggering capital flight.
Robert Frank highlights a "liquidity death spiral": To pay a $12B wealth tax, a founder must sell stock, which triggers federal and state capital gains taxes, ballooning the total cost to ~$20B.
Bill Ackman describes the situation as California's "self-immolation," suggesting a structural decline in the state's economic viability as its tax base flees.

Trade Ideas

Ticker	Direction	Speaker	Thesis	Time
META /GOOGL	WATCH	Robert Frank Wealth Editor, CNBC	A 5% wealth tax on Zuckerberg or Page would result in a tax bill of ~$12-15B. They do not have this cash on hand. To pay the tax, they are forced to sell stock. Selling stock triggers Capital Gains tax, requiring more selling to cover that. This creates a forced liquidation event where founders must dump tens of billions in equity, creating massive supply overhang. Watch these tickers closely. If the tax measure gets on the ballot (November), the market will front-run the insider selling pressure. The tax is struck down by courts (highly likely according to Frank), negating the need to sell.	0:13
FLORIDA REAL ESTATE /REGIONAL ECONOMY	LONG	Robert Frank Wealth Editor, CNBC	Zuckerberg bought a $150M home in Florida. Meta has a growing office in Miami. Robert Frank confirms other billionaires (Page, Brin) are moving family offices, private companies, and children to Florida schools. This is the "Cluster Effect." When the CEO moves, the C-suite, family offices, and philanthropic arms follow. This creates a structural tailwind for Florida's high-end real estate market and local economy, regardless of whether the specific CA tax passes. Long Florida-exposed assets (e.g., St. Joe Company or Miami-centric developers) as wealth migration accelerates. Florida real estate market saturation or climate-related insurance risks.	—
CALIFORNIA MUNICIPAL BONDS	AVOID	Bill Ackman CEO, Pershing Square Capital (Quoted via X/Twitter)	Ackman states "California's toast self-immolation" in response to the tax proposal. Frank notes that billionaires are moving their "personal ecosystems" (companies not attached to public tickers) out of state. California's tax revenue is disproportionately dependent on the top 0.1% of earners. If the "tax base" physically relocates to avoid wealth confiscation, the state faces a fiscal cliff, increasing the credit risk of its municipal obligations. Avoid exposure to California state debt as the quality of the tax base degrades. The tax fails to reach the ballot, and the status quo remains, stabilizing the tax base.	—