Bill Ackman Blasts Ro Khanna For Defending Billionaire Tax: 'Lost His Way'

Core Viewpoint - Bill Ackman, CEO of Pershing Square Capital Management, has publicly withdrawn his support for Congressman Ro Khanna due to Khanna's defense of a controversial wealth tax proposal in California, which Ackman believes contradicts Khanna's previous stance against taxing unrealized gains [1][2][3]. Group 1: Tax Proposal and Economic Impact - The proposed California initiative aims to impose a tax of up to 5% on the net worth of residents with assets exceeding $1 billion, regardless of whether those assets are sold [3][4]. - Ackman argues that such aggressive taxation could lead to a "self-destruction" of California's economy, warning that it may drive entrepreneurs and job creators out of the state, resulting in a loss of tax revenues and job creation [4]. - Reports suggest that prominent tech figures, including Peter Thiel and Larry Page, are contemplating leaving California to avoid the potential tax burden [4]. Group 2: Entrepreneurial Concerns - Venture capitalist Chamath Palihapitiya supports Ackman's concerns, stating that the tax could stifle entrepreneurship by forcing business founders to liquidate their holdings to pay taxes on unrealized wealth [5]. - The tax is characterized as a one-time 5% levy on all assets, which could significantly impact individuals who take minimal salaries and receive the majority of their compensation in equity [5].