San Jose Mayor: CA's proposed wealth tax may ultimately push burden onto middle class families

Summary

San Jose Mayor Matt Mahan joins 'Squawk Box' to oppose California's proposed wealth tax on billionaires. He argues the measure would trigger capital flight, damage Silicon Valley's innovation economy, and ultimately shift the burden to working- and middle-class families. He says the proposal can be defeated but uncertainty is already causing exits, and he urges closing tax loopholes and reducing government waste and fraud before raising taxes.

• California's proposed billionaire wealth tax is debated as a response to inequality and cost-of-living pressures.
• San Jose Mayor Matt Mahan, a Democrat, opposes the tax and warns of capital flight from Silicon Valley.
• Mahan says the tax could hurt state finances and ultimately burden working- and middle-class families.
• He cites billionaires and job creators, including Larry Page, leaving California as early damage.
• He says the measure can be defeated but retroactive-tax uncertainty is already disruptive.
• He favors closing the borrow-against-unrealized-gains loophole, citing Bill Ackman's proposal.
• He calls for cutting government waste and fraud, including fraudulent unemployment claims, before raising taxes.
• He argues California needs more housing and energy abundance to address cost-of-living problems.