Million Dollar Listing star Josh Altman has warned Californians that the Democrat-backed wealth tax on billionaires will only end up burdening the working class.
Speaking with Fox Business, the celebrity real estate broker expressed skepticism about the proposal that would force the Golden State's richest residents to fork over a one-time lump sum worth five percent of their assets.
'That's the dumbest idea I've heard since the ULA Measure, which I thought then was the dumbest idea I've heard,' Altman told veteran journalist Stuart Varney on a Saturday segment of Varney & Co.
The Measure United to House LA (ULA) is a 'mansion tax' passed by voters in November 2022 that went into effect in April 2023.
It places a four percent tax on property sales ranging from $5 million to $10 million, and a 5.5 percent tax on sales exceeding $10 million to fund affordable housing and homeless programs in the City of LA.
'There's about 200 to 250 billionaires in California, more than any other state,' the 46-year-old realtor who once appeared on Keeping Up with the Kardashians said.
'However, there are also 40 million people in California, 23 million of whom are eligible to vote. If this hits the ballot, there is no way that the billionaires come out on top here, and that's an issue.'
'It was the same thing with the ULA Measure - it's not the billionaires you're hurting,' he asserted, although noting that seven billionaires he knows have already fled California for more wealth-friendly places such as Florida and Nevada.
Josh Altman (right) discussed the California Billionaire Tax Act with Stuart Varney (left) on Fox's Varney & Co
An aerial shot of Downtown Los Angeles, California at sunset
'It's the trickle-down effect. It's people, the hundreds of thousands of people that work for these billionaires. It's the trillion dollars that we're going to lose.'
Several of the state's billionaires - including LinkedIn co-founder Reid Hoffman and Google co-founder Larry Page - have spoken out against the California Billionaire Tax Act.
Venture capitalist Vinod Khosla blasted the proposal championed by Representative Ro Khanna on X in December.
'You are so wrong Ro,' Khosla began. 'Top prospects for generating wealth in the state will almost certainly leave the state.'
He went on to say that the state would lose its 'most important taxpayers and net off much worse.'
'Long term damage unless legislature bans wealth taxes. Easier to equalize taxes on work income and capital gains at the national level,' he wrote.
However, Nvidia founder and CEO Jensen Huang said that he has not paid any mind to the act and is not fazed by the possibility of paying the hefty price.
Even Democrat Governor Gavin Newsom has expressed opposition to the tax, claiming at a Bloomberg News event that he has been 'burdened by the facts' and cannot support the effort.
Hundreds of Teamsters Union members are seen marching against unfair wages and dangerous work conditions at an Amazon in Victorville. The union issued a statement endorsing the wealth tax
Governor Gavin Newsom spoke out against the act at a Bloomberg News event on Thursday
'The fact is, it actually will reduce investments in education. It will reduce investment in teachers and librarians, childcare. It will reduce investments in firefighting and police,' he explained.
But the legislation is supported by one of the nation's largest unions - Teamsters California.
The union representing professionals in both private and public sectors issued a formal statement last week.
'The fight to pass the California Billionaire Tax is a fight to protect workers’ ability to afford living in California; it's a fight Teamsters California will continue to lead,' co-chairs Peter Finn and Victor Mineros said in a joint statement.
'Our members refuse to stand idle while Big Tech replaces family-supporting jobs with unaccountable and unsafe AI.
'We will hold tech CEOs accountable to prevent hospitals from closing and prevent more families from being priced out of health care coverage.'
The Daily Mail has reached out to Teamsters for comment on concerns raised by Altman that the act could jeopardize the working class.
Signature collection to get the act on the November ballot began this month. Under the proposal, the ultra-wealthy would owe the one-time tax in 2027.
Representative Ro Khanna has been championing efforts to get the wealth tax on the November ballot
Vinod Khosla said Representative Khanna was 'so wrong' and that the ultra-wealthy will leave the state
Those obligated to pay could choose to spread it over five years, with tacked-on charges.
'We must balance making sure we keep the Silicon Valley miracle and dynamism with ensuring that the working class benefits from the prosperity with healthcare, education, and childcare,' Khanna previously told the Daily Mail.
'You know what a billionaire said to me once?' Altman asked Varney as he wrapped up his explanation.
'He said, "You know what the difference is between 100 million and a billion? Nothing."
'[The Billionaires will] be fine. It's people that need them that are not, and we're running them out of California.'
