Commentator Hilton Warns California Wealth Tax Could Drive Silicon Valley Talent, Investment Out of State

Political commentator Steve Hilton warned that the proposed California wealth tax could drive top Silicon Valley talent and investment out of the state, threatening the region's technology and innovation economy.

Hilton Slams California Asset Tax

In a Tuesday post on X featuring a clip from his Stinchfield Tonight interview, Hilton criticized the proposed tax and urged California to abandon the measure.

"California still has everything it needs to lead the world in innovation—we just have to stop this asset confiscation tax before it drives Silicon Valley and our best talent away for good," he wrote.

He added, "Enough is enough. Let's choose growth."

During the interview, Hilton argued the proposal is unconstitutional, calling it "asset confiscation" and "completely insane." He claimed roughly $1 trillion in wealth has already left California, costing the state billions in potential tax revenue.

"This is economic suicide," Hilton said.

"It really is. It would destroy Silicon Valley and the innovation economy at a stroke," he added.

Hilton Warns of Silicon Valley Talent Exodus

Hilton also warned the proposal could hurt startup founders whose wealth is tied primarily to company shares rather than cash.

"If you're a billionaire on paper but don't have any cash, suddenly you owe the government taxes as if you were a real billionaire," Hilton said.

He argued the venture capital industry depends on entrepreneurs' ability to attract investment based on future earnings, and warned higher taxes could drive such activity out of California.

California still has everything it needs to lead the world in innovation—we just have to stop this asset confiscation tax before it drives Silicon Valley and our best talent away for good.

Enough is enough. Let's choose growth.

— Steve Hilton August 19, 2026

California Billionaire Tax Faces Opposition

Earlier, billionaire Mark Cuban warned that Rep. Ro Khanna's proposed 5% California wealth tax could drive startups, founders, and investors out of the state.

He said founders could become "cash-poor, stock-rich," struggling to pay taxes on company shares, adding that he would ask startups to relocate out of state before investing.

Khanna defended the proposal, noting that roughly 900 billionaires control wealth equivalent to 22% of U.S. GDP, describing the situation as a "second Gilded Age."

He argued a broader billionaire wealth tax could raise $4 trillion over 10 years for childcare, education, trade schools, and expanded Medicare coverage.

Sen. Bernie Sanders said Mark Zuckerberg could face a tax bill of approximately $10.5 billion if the one-time tax passes, while supporters estimate it could raise $100 billion to help offset federal cuts to Medicaid and food assistance.