Inside California's billionaire tax: Here's what to know

Summary

Robert Frank joins Squawk Box to explain California's proposed billionaire tax, including its 5% rate on residents worth at least $1 billion and projected $100 billion in revenue. The discussion focuses on the retroactive January 1, 2026 start date, strict California residency tests, legal challenges, and reports that billionaires like Peter Thiel and Larry Page may try to leave. No specific securities, assets, or trades are recommended.

• Robert Frank details California's proposed 5% billionaire wealth tax.
• The measure would target California residents worth at least $1 billion.
• Proponents say it could raise $100 billion to offset federal health-care cuts.
• The tax would be retroactive to January 1, 2026, before voters could approve it.
• California's strict residency rules require moving many personal and business ties.
• Lawyers say the retroactive structure may be illegal and likely faces court challenges.
• Reports suggest Peter Thiel and Larry Page may leave California, though timing may be difficult.
• No specific securities, assets, or investment trades are discussed.