Political commentator Steve Hilton warned that a proposed California wealth tax could drive Silicon Valley’s top talent and investment out of the state, threatening the region’s technology and innovation economy.
Hilton Slams California Asset Tax
On Tuesday, in a post on X, while sharing a Stinchfield Tonight interview clip, Hilton criticized the proposed tax and urged California to abandon the measure.
"California still has everything it takes to lead the world in innovation — we just have to stop this asset-seizure tax before it drives Silicon Valley and our best talent out for good," he wrote.
He added, "Enough is enough. Let’s choose growth instead."
In the interview, Hilton argued that the proposal would be unconstitutional, calling it an "asset seizure" and "completely insane." He claimed about $1 trillion in wealth has already left California and said the state had lost billions of dollars in potential tax revenue as a result.
"It’s economic suicide," Hilton said.
He added, "It really is. It will, at a stroke, destroy Silicon Valley and the innovation economy."
Hilton Warns of Silicon Valley Exodus
Hilton also warned that the proposal could hurt startup founders whose wealth is largely tied to company shares rather than cash.
"If you’re a paper billionaire but don’t have any money, suddenly you owe the government as if you’re an actual billionaire," Hilton said.
He argued that the venture capital industry depends on entrepreneurs being able to attract investment based on their future earnings and warned that higher taxes could drive that activity out of California.
California still has everything it takes to lead the world in innovation — we just have to stop this asset-seizure tax before it drives Silicon Valley and our best talent out for good.
— Steve Hilton (@SteveHiltonx) August 19, 2026
Enough is enough. Let’s choose growth instead. pic.twitter.com/UGFY1TN6hp
California Billionaire Tax Faces Pushback
Earlier, Billionaire Mark Cuban warned that Rep. Ro Khanna’s (D-Calif.) proposed 5% California wealth tax could drive startups, founders and investors out of the state.
He said founders could become "cash poor, stock rich" and struggle to pay taxes on company shares, adding that he would require startups to relocate before investing.
Khanna defended the proposal, saying about 900 billionaires controlled wealth equal to 22% of U.S. GDP and describing the situation as a "second Gilded Age."
He argued that a broader billionaire wealth tax could raise $4 trillion over 10 years for child care, education, trade schools and expanded Medicare.
Sen. Bernie Sanders (I-Vt.) said Mark Zuckerberg could owe about $10.5 billion if the one-time tax passed, while supporters estimated it could raise $100 billion to help offset federal cuts to Medicaid and food assistance.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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