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California billionaire tax ‘economically disastrous’ expert warns
FOX Business host Marcus Lemonis discusses billionaires fleeing California to avoid a proposed wealth tax on ‘The Bottom Line.’
A proposed tax targeting California’s wealthiest residents is drawing strong support from likely voters, but critics warn it would discourage investment and trigger an exodus of high-income earners and businesses from the state.
“I think it’s a really economically disastrous idea,” Adam Michel, director of tax policy studies at the Cato Institute, told Fox News Digital. “It is both diagnosing the problem incorrectly and also won’t fix the problem that is being diagnosed.”
The “2026 California Billionaire Tax Act” would impose a one-time tax equal to 5% on the net worth on individuals making above $1 billion, according to California’s Legislative Analyst’s Office (LAO). Covered assets would include businesses, securities, art, collectibles and intellectual property.
The measure would not count real estate someone owns in their own name (or through a revocable trust), but real estate held through a company they own could still factor into the tax because it can raise the value of that business.
TAX FIGHT PUTS CALIFORNIA ON COLLISION COURSE AS BILLIONAIRES LEAVE FOR RED STATES
An activist holds a sign during a “Rally to Say No to Tax Breaks for Billionaires and Corporations” at the Upper Senate Park on Capitol Hill on April 10, 2025, in Washington, D.C. (Alex Wong/Getty Images / Getty Images)
Supporters — including SEIU-United Healthcare Workers West (SEIU-UHW) — say the measure is an emergency response to save the state’s healthcare system from “collapse” due to potential federal cuts.
According to the LAO analysis, “90 percent of the money would have to be spent on health care services for the public” while the remainder would go toward administrative costs, education and food assistance.
However, Michel says that wealth taxes don’t work in practice, arguing they weaken incentives to build businesses, create complicated administrative headaches and have generated disappointing revenue in countries that have tried them.
He also says they rest on a flawed “fixed pie” view of the economy that assumes wealth can simply be redistributed through taxation, but in actuality results in slower growth and a worse outcome for everyone.
Michel says a 5% wealth tax would siphon money from businesses, leaving owners with less to reinvest, expand, and hire. (iStock / iStock)
Michel also said a wealth tax differs from an income tax because it is assessed on accumulated assets rather than annual earnings and can translate to a much higher burden on business owners.
If a business earns anything less than a 5% return, every single dollar of profit is taxed, he explained, translating into an income-tax rate at or above 100%, leaving no incentive for an entrepreneur to grow and maintain that asset.
Michel noted the proposal has even drawn opposition from Gov. Gavin Newsom.
“He’s very aware of the fact that this proposal will actually lead to an exodus of the California tax base,” he said.
CALIFORNIA IS BROKE, BUT IT’S NOT TOO LATE FOR THE REST OF US
California Governor Gavin Newsom has come out against the 2026 Billionaire Tax Act. (Fred Greaves/Reuters / Reuters Photos)
Michel cautioned the damage wouldn’t be limited to the roughly 200 billionaires targeted by the initiative. Because most wealth is held in “productive assets” like stock in companies, real estate, and machinery, he warned the tax would penalize the investments that drive the broader economy.
“We will get less housing, we will get less investment in machinery and equipment, we’ll get less investment in new companies,” Michel said. “That ultimately makes everyone worse off.”
California already has the most progressive tax system in the industrialized world, according to the Fraser Institute.
Wealth taxes have been tried around the world and failed, he pointed out, and only a few OECD countries still use them since their peak in the 1990s. In Spain, what was proposed as a temporary one-time levy eventually became a permanent tax on the wealthy. The same thing could happen in California, he warned.
“States like California have an insatiable hunger for taking other people’s money,” he told Fox News Digital. “And if they’re successful this time, there’s nothing stopping them from renewing this tax in future years.”
CALIFORNIA WILL REGRET BILLIONAIRE EXODUS, WASHINGTON POST WARNS
A person holds a ‘Resist Billionaires’ sign as protesters demonstrate against Tesla CEO Elon Musk’s Department of Government Efficiency (DOGE) initiatives during a nationwide “Tesla Takedown” rally outside a Tesla dealership on March 29, 2025, in Pas (Mario Tama/Getty Images)
Michel added that the threat alone of it returning would encourage high-income residents to leave the state.
The bill’s sponsors at the SEIU-United Healthcare Workers West say it is about making billionaires pay their “fair share.”
“California’s billionaires pay much lower tax rates than what working families pay out of every paycheck. And soon, massive federal healthcare funding cuts will collapse key parts of the California healthcare system,” Suzanne Jimenez, chief of staff at SEIU-UHW, told Fox News Digital.
She warned “local hospitals and emergency rooms will shut their doors forever” unless voters approve the Billionaire Tax so “billionaires pay their fair share” through a “one-time emergency 5% tax.”
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SEIU members protesting ICE on Friday, Jan. 23, 2026. (Hyoung Chang/The Denver Post / Getty Images)
She rejected “sensationalized claims” from “a handful of billionaires and their highly-paid consultants” that there’s been an exodus from California before the Jan. 1, 2026, residency deadline. Citing “a lack of public reports or confirmations,” she says it “does not appear to be true,” and that “the overwhelming majority” of roughly 200 billionaires “appear to have opted to remain.”
Jimenez said nurses, healthcare workers, teachers, and firefighters “pay taxes on nearly every dollar they earn,” and argues that without the measure, “higher healthcare costs and higher taxes will be shifted onto millions of Californians” already facing “skyrocketing healthcare and prescription costs.”
She called the debate a “convenient distraction” while her union’s “120,000 healthcare workers” stay focused on keeping hospitals and ERs open for “California’s 40 million residents.”
“While these outlandish claims are a convenient distraction for a small number of billionaires, the 120,000 healthcare workers of our union remain focused on keeping California’s hospitals and ERs open for California’s 40 million residents who rely on them,” she added.
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Even though the proposal is still in the signature-gathering phase to qualify for the November ballot, it’s drawn strong support from likely voters, according to new polling. A February 2026 Nestpoint survey found 60% of likely voters back the wealth tax, even as a majority of those same respondents say the move would spark a business exodus and cost local jobs.
Fox News’ Kristen Altus contributed to this report.
Bluesky is the latest social media platform to introduce its very own AI chatbot, with Attie being formally introduced to the world as the technology is set to deliver custom feeds to users with simple prompts.
Attie can understand natural language and help users create a feed that they want without the hassle of learning how to code.
Bluesky Introduces New Agentic AI Social App, Attie
Bluesky’s former CEO and now Chief Innovation Officer, Jay Graber, recently shared a new development from the company called “Attie,” the company’s latest take on a generative artificial intelligence platform, but it is not exactly a chatbot.
Instead of talking to Attie to learn about various topics, create write-ups, and more, the new agentic AI will help users create their own feeds on Bluesky.
The new agentic AI was built using Anthropic’s Claude chatbot, and the app was built on the same underlying protocol that Bluesky is using, the open-source framework AT Protocol.
According to Graber, users need not be intimidated to create their custom feeds on Bluesky with the help of Attie as the experience will only feel like users are “having a conversation rather than configuring software.”
Attie: Create Custom Feeds Using Natural Language
As mentioned earlier, users may create custom feeds using Attie. The company’s development of this new agentic AI centers on using natural language that will allow users to freely talk to the chatbot like in a normal setting with friends, but it can get complex work done, like coding, to create a feed based on their preferences.
It has been almost three years since Bluesky first arrived in the tech industry, with the platform then popularizing the use of custom algorithmic feeds on the social media experience.
Users only need to describe the content they want to see on their feed to Attie to get started. For example, they only need to tell the agentic AI to “build a feed that gives me updates on new and upcoming console game releases from accounts that I follow.”
The agentic AI will act as a coding agent to create the feed without users actually writing code.
Originally published on Tech Times
Premier Roger Cook has welcomed the federal government’s decision to half fuel excise, saving motorists about 26 cents a litre in petrol and diesel at the bowser.
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Prime Minister Anthony Albanese has announced that fuel excise will be cut in half for petrol and diesel beginning April 1.
This will be in effect for three months and will reduce cost of fuel by 26.3 cents a litre.
Fuel Excise Halved for Three Months
According to a report by ABC News, the announcement was made after a meeting of the national cabinet with state and territory leaders. During this meeting, a four-point action plan to deal with the fuel crisis was also discussed.
Albanese also went on to claim that Australia is on “level two” of the fuel crisis. The goal, according to the prime minister, is to “keep Australia moving.”
He likewise said that the country is still far from reaching the next level, which will require “taking targeted action.”
There is still a level four, which will entail “protecting critical services.”
Albanese has also called for citizens to only take the fuel they need as to not cause even bigger supply problems.
NSW Premier Reacts to National Fuel Plan
According to 9News, New South Wales Premier Chris Minns said that he welcomes the action plan. He likewise commented on how long he thinks the ongoing conflict in the Middle East will continue.
“We are not necessarily sure what will happen in the Middle East in the next three or six months,” Minns said. “We are not making a decision today to tell people to cancel their trips around the state or cancel Easter holidays.
“But as time goes on, we may tell people to use their common sense on this and reduce their usage,” he added.
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Thousands of ready-to-eat pizza and bread products were recalled over the potential presence of metal fragments, according to the Food and Drug Administration.
North Carolina-based Bakkavor voluntarily initiated the recall on Jan. 19, according to the FDA.
Last week, the health agency classified the alert as a Class II recall, which means “use of or exposure to a violative product may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote.”
NEARLY 10M POUNDS OF FROZEN FRIED RICE SOLD AT TRADER JOE’S ADDED TO RECALL: USDA
Thousands of ready-to-eat pizza and bread products were recalled over the potential presence of metal fragments. (Stefan Irvine/LightRocket via Getty Images / Getty Images)
About 23,459 cases of roasted tomato and Parmesan focaccia bread were recalled, sold under brand names such as Frederik’s by Meijer, Harris Teeter, Trader Joe’s and Fresh & Simple.
Additionally, 2,337 cases of HelloFresh Basil Pesto and Mozzarella Pizza, made up of 15 packages per case, were also recalled.
The recall affects four pizza lot numbers and more than a dozen focaccia bread lot numbers, with use-by dates ranging from April 27 through Oct. 15.
Brands affected by the recall include HelloFresh, Frederik’s by Meijer, Fresh & Simple, Harris Teeter and Trader Joe’s. (Plexi Images/GHI/UCG/Universal Images Group via Getty Images / Getty Images)
The affected items were distributed in 10 states — Arizona, California, Connecticut, Florida, Illinois, Michigan, North Carolina, New Jersey, Texas and Virginia.
The food products were also shipped directly to customers through HelloFresh.
90,000 BOTTLES OF CHILDREN’S IBUPROFEN RECALLED NATIONWIDE, FDA SAYS
The FDA classified the alert as a Class II recall. (iStock / iStock)
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Customers are urged to dispose of the product or return them to the place of purchase for a refund.
No injuries have been reported in connection with the recall thus far.
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Costco is set to debut its first stand-alone gas station this summer in Mission Viejo, California, marking a major expansion of its fuel operations, with a second location in Hawaii slated to open next year.
The California location, located roughly 50 miles from Los Angeles, is expected to open in late June, according to local outlet KABC, citing city officials. It will become the chain’s largest gas station, featuring 40 pumps.
A second location is in the works for Honolulu, Hawaii, in the Kapālama Kai community, according to C-store Dive, citing a spokesperson from private education system Kamehameha Schools, which owns the project.
The move marks a major step for the discount retail giant, whose gas stations at existing warehouse locations have long been plagued by lengthy wait times, heavy traffic and crowded parking lots.
COSTCO SAYS YOUR NEXT CHECKOUT COULD TAKE UNDER 10 SECONDS THANKS TO NEW AUTOMATED PAY STATIONS
Vehicles in line at a Costco gas station in Vallejo, California, US, on Thursday, May 29, 2025. (David Paul Morris/Bloomberg / Getty Images)
Costco’s Mission Viejo site at 25732 El Paseo will sit on the former location of a Bed Bath & Beyond, which city officials approved for demolition last year to make way for the project. It will neighbor a Krispy Kreme location, a Dairy Queen Chill & Grill and a Jack in the Box.
The project will feature 20 fueling dispensers, equivalent to 40 pumping stations, according to 2025 city planning documents.
Spanning 17,234 square feet, the “fueling canopy” will also house an accessory office and breakroom building for employees, the documents stated.
The new gas station will be open daily from 5 a.m. to 10 p.m. exclusively for Costco members, C-store Dive reported.
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A customer pumps gas on Wednesday, Dec. 3, 2025, in Schenectady, N.Y. (Lori Van Buren/Albany Times Union via Getty Images / Getty Images)
According to GasBuddy, gas prices in the Mission Viejo area currently range from $5.69 to $6.35 per gallon.
The two closest existing Costco gas stations — at the Laguna Niguel and Laguna Marketplace warehouses, roughly 2.5 to 3 miles from the planned Mission Viejo site — both list gas at $5.69 per gallon, according to the Costco app.
Drivers refuel vehicles at a Costco Wholesale Corp. gas station in Brookhaven, Georgia. (Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)
For the Hawaii location, demolition and preparation of the property began in October 2025 and are ongoing, according to the project’s website.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COST | COSTCO WHOLESALE CORP. | 983.86 | +4.21 | +0.43% |
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Gas prices in Honolulu range from $5.14 to $5.59 per gallon, according to GasBuddy. The closest Costco in Iwilei, about 2.2 miles from the planned Kapālama Kai site, lists gas at $4.14 per gallon, according to the Costco app.
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Brent crude futures jumped $3.09, or 2.74%, to $115.66 a barrel by 2353 GMT after settling 4.2% higher on Friday.
U.S. West Texas Intermediate was at $102.56 a barrel, up $2.92, or 2.93%, following a 5.5% gain in the previous session.
Brent has soared 59% this month, the steepest monthly jump, exceeding gains seen during the 1990 Gulf War, after the Iran conflict effectively closed the Strait of Hormuz, a conduit for a fifth of the world’s oil and gas supplies.
The war, launched on February 28 with U.S. and Israeli strikes on Iran, has spread across the Middle East, with Yemen’s Iran-aligned Houthis on Saturday launching their first attacks on Israel since the start of the conflict, raising concern about shipping lanes around the Arabian Peninsula and the Red Sea.
“The conflict is no longer concentrated in the Persian Gulf and around the Strait of Hormuz, but now extends into the Red Sea and the Bab el-Mandeb – one of the world’s most crucial chokepoints for crude and refined product flows,” JP Morgan analysts led by Natasha Kaneva said in a note.
Saudi crude exports re-directed from the Strait of Hormuz to the Yanbu port in the Red Sea reached 4.658 million barrels per day last week, data from analytics firm Kpler showed. If exports from Yanbu were disrupted, Saudi oil would need to pivot toward Egypt’s Suez-Mediterranean (SUMED) pipeline to the Mediterranean, JP Morgan analysts said.
Attacks in the region escalated over the weekend and damaged Oman’s Salalah terminal despite efforts to start ceasefire talks.
Iran said it was ready to respond to a U.S. ground attack, accusing Washington on Sunday of preparing a land assault even as it sought negotiations.
Pakistan’s Foreign Minister Ishaq Dar said they had covered possible ways to bring an early and permanent end to the war in the region as well as potential U.S.-Iran talks in Islamabad.
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