Billionaire investment guru Ray Dalio is warning that the California billionaire tax isn’t the answer to inequality — issuing a stark two-word wake-up call on the controversial wealth tax.
Dalio raised the alarm about spiraling inequality and debt but called the billionaire tax — which will hit California ballots in November aftergathering 1.6 million signatures— a “bubble popper” that could blow up the economy.
“Wealth is different from money,” the Bridgewater Associates founder explained in aCNBC interview.
“You have to sell wealth to spend money,” Dalio said. “People then have to sell some of that wealth. But now you have a wealth tax, which is causing people to move to different states and other issues.”
“Theses things are going to intensify,” he added.
Daliio isn’t alone in his concerns about unintended consequences of the billionaire tax, which would impose a one-time, 5% levy on the total wealth of California billionaires.
Google co-founder Sergey Brin blasted the tax planin a rare public statement— invoking his childhood in Soviet Russia.
“I fled socialism with my family in 1979 and know the devastating, oppressive society it created in the Soviet Union,” Brin told the New York Times.
“I don’t want California to end up in the same place,” the tech titan added.
Others are warning that the wealth tax could tank the state’s economy, sending jobs and spending elsewhere.
Source: California Post – Breaking California News, Photos & Videos
