The new year is nearly here and it’s time to start a new topic on the 2026 elections
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Crypto and Tech Billionaires Warn of California Exodus Over Proposed 5% ‘Unrealized Gains’ Wealth Tax
Crypto and tech leaders warn the proposed billionaire tax on unrealized gains could accelerate capital flight and undermine California’s innovation economy.
High profile names across the crypto and tech sector are sounding alarms over California’s proposed 2026 Billionaire Tax Act, a ballot initiative that would impose a one-time 5 percent tax on net wealth above $1 billion, including unrealized gains on paper assets, to help fund state services. Opponents argue the measure could trigger an exodus of high-net-worth residents, disrupt local investment and innovation, and force equity sales to cover tax liabilities.
The initiative must gather nearly 875,000 signatures to qualify for the November 2026 ballot. Proponents argue it offers a mechanism to address growing state budget shortfalls, particularly in healthcare, by tapping wealth that currently escapes taxation because most billionaires do not realize gains through sales of their assets. Supporters contend that annual wealth growth has far outpaced wage growth and that taxing accumulated wealth is a matter of equity.
Opposition is not limited to the private sector. Some commentators warn that the proposed tax could diminish California’s competitiveness, accelerate capital flight to more tax-friendly jurisdictions, and ultimately reduce long-term tax receipts as wealthy residents and companies relocate.
I dont care about warnings. That is just posturing. I want to see them leave. Because once (if) it passes, it will be too late to bail. So right now it is just them complaining to try to save themselves some money. It’s no different than all the celebrities who were going to move to Canada if Trump was elected. That was just throwing a tantrum, I want these billionaires to be serious.
Some, like Musk, already have
Also, much of the billionaires wealth is in company stock . Selling it will disrupt the market and reduce the ability to raise additional capital for the companies
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This seems pretty shortsighted. All the portable wealth will just leave.
Set it at an amount that’s just barely enough to sting but not enough to force any capital flight. 50 or 100bp.
I’ve been out of school a while, but isn’t that what the Laffer curve is all about?
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That’s the catch - unless they leave proactively, once passed it can be imposed as of that date, whether the taxpayer remains a resident of CA or not.
Another Dem feels the heat on taxing tips. BTW add California to the Democrat states that tax tips. With tax season now, this will not be good for the holdouts. They will have to modify their tax forms to add back the tips income to the federal income.
Trump’s One Big Beautiful Bill made a straightforward promise: more money in workers’ pockets.
The plan eliminated the federal tax on tips and overtime pay for linemen and factory workers, and created a new deduction for seniors relying on Social Security. Treasury Secretary Scott Bessent called it “the most pro-worker, pro-family legislation in a generation.”
**However, several blue-state governors were refusing to reciprocate by eliminating state taxes on tips,**including Govs. Kathy Hochul (D-N.Y.), J.B. Pritzker (D-Ill.), and Jared Polis (D-Colo.). Treasury Secretary Scott Bessent accused them of “deliberately blocking their own residents” from the bill’s benefits at the state level.
California is also feeling the heat on taxing tips.
But tax deductions on tips could cost California $3.2 billion as it faces massive budget deficits, according to Reuters, and lefty lawmakers have shown no appetite for cutting service workers a break.
Tim Walz - don’t let the door hit you on the way out.
Minnesota governor Tim Walz was calling Shirley [exposer of the Somali daycare fraud] a “delusional conspiracy theorist” on X. News flash: if you are the governor of a state with almost 6 million people and you’re arguing with a 23-year-old online, you’ve already lost.
This morning Walz announced he was dropping his bid for a third term as Minnesota governor, a move that would have been unthinkable even a month ago.
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The Google cofounder has cut ties between California and many of his assets that risked exposing him to a proposed new wealth tax in the state, meeting an end-of-2025 deadline, according to filings reviewed by Business Insider.
Page’s family office, Koop, was converted out of California in late December and incorporated in Delaware, per filings with both states. Page converted several other entities to Delaware, including Flu Lab LLC — a vehicle he has used to fund research on tackling influenza and lists its principal office address in Nevada — and another entity named One Aero, which has funded his flying car ventures and lists its principal office address in Florida.
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Good news after less than one year of President Trump’s policies
Current GDP Forecast
The Atlanta Fed’s GDPNow model estimates the real GDP growth for the fourth quarter of 2025 at 5.4% as of January 8, 2026. This is a significant increase from a previous estimate of 2.7% on January 5, 2026.
Key Components of the Forecast
Recent Changes
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The nowcast for real personal consumption expenditures growth has risen from 2.4% to 3.0%.
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The contribution of net exports to the GDP forecast has also been adjusted, reflecting new data from various economic reports.
Methodology
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The GDPNow model uses a mathematical approach to estimate GDP growth based on available economic data for the current quarter.
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It aggregates 13 subcomponents of GDP, employing a methodology similar to that of the U.S. Bureau of Economic Analysis.
Upcoming Updates
The next update for the GDPNow model is scheduled for January 9, 2026. This will provide further insights into the evolving economic landscape as new data becomes available.
Looking like the satire was right on Walz. Just got slapped with a DOJ criminal referral for the MN fraud
Fraudsters stole an estimated $9 billion from Minnesota’s social services system, yet Governor Walz, Attorney General Ellison, and Minnesota Democrats ignored warnings, failed to act, and retaliated against whistleblowers.
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The battle for the House continues
DeSantis announced the move on social media, saying he will be convening a special session for the state legislature to adjust current maps. The move comes as red and blue states across the country have pursued redistricting in a high-stakes battle to secure an advantage in the 2026 midterm elections.
“Today, I announced that I will be convening a Special Session of the Legislature focused on redistricting to ensure that Florida’s congressional maps accurately reflect the population of our state. Every Florida resident deserves to be represented fairly and constitutionally,” DeSantis wrote.
“This Special Session will take place after the regular legislative session, which will allow the Legislature to first focus on the pressing issues facing Floridians before devoting its full attention to congressional redistricting in April,” he added.
What happened to the “affordability crisis”?
US household wealth hit record in third quarter 2025, Fed data shows
The value of households’ stock portfolios rose by $5.5 trillion in the quarter while the value of real estate holdings rose by $300 billion, the Fed said.
A frenzy of investments in artificial intelligence stocks powered a 7.8% price increase for the benchmark S&P 500 in the quarter, while the Nasdaq 100 index, where many of the biggest AI names are listed, climbed more than 11%. The market added more modestly to those gains in the fourth quarter and have begun 2026 with further increases.
Tell that to the Karen’s rioting in Democrat cities
Polymarket refuses to pay bets that US would ‘invade’ Venezuela
Prediction market disputes US raid amounted to an invasion in fight over more than $10.5mn in wagers
Polymarket is disputing that the mission to capture Nicolás Maduro constituted an invasion and said it will only settle a prediction contract if the US military takes control of Venezuelan territory. The decision by the prediction market has angered gamblers and added to the controversy surrounding a successful wager on the timing of Maduro’s capture that netted more than $400,000 in winnings for a mystery trader. The dispute over the definition of “invade” highlights just one of the controversies faced by the mostly unregulated industry.
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This is an easy one - the people complaining about affordability do not have stock portfolios, and real estate prices rising only cause rents to rise even further.
Clearly, those with stock holdings have enough, and should be forced to give this $5.5 trillion in gains to those without any investments. Sadly, we’re not far from them actually being that blunt in expressing their entitlements.
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And when completed, they need to make sure they’re able to explain how the new map accomplishes this.
It’s more than that. I think even most people who do have “stock portfolios” have those portfolios in their retirement accounts, so a bigger retirement account does nothing to improve affordability if you’re not retired.
Trump going after the Fed: