California’s proposed wealth tax is getting attention for its focus on billionaires, but entrepreneur Grant Cardone says that label is misleading.
In a video posted to X, Cardone warned that the policy could have far-reaching consequences for everyday Americans.
“The reason they’re calling it a billionaire tax is to make it easier for people to vote for it,” he said.
“It’s going to affect you greatly. And by the way, it’ll affect you probably more than it’ll affect me.”
Cardone, who made his fortune through real estate and online training programs, argued that the proposed tax goes beyond just the ultra-wealthy.
He said it could result in the government taxing all personal property, not just real estate, but also stocks, savings, furniture, cars, and even silverware.
“They’re proposing the creation of a new tax system that will allow the federal government to come in and audit everything you own,” Cardone said.
“When I say property, you think a house, but I’m telling you… the silverware, the stocks, the art… I’m talking about everything without exclusion.”
He described the plan as a form of property seizure, especially harmful to older Americans who have accumulated assets over their lifetime but now live on fixed incomes.
“Let’s say you’re making Social Security money, you’re at the end of your year, your net worth is, I don’t know, $8 million, but you don’t really have any income,” Cardone said.
“And they come in and say, ‘Look, we need 5% this year of your $8 million,’ which is $400,000.”
In a written post, Cardone echoed the same concern, writing:
“And don’t believe it’s about billionaire $8T, they want to tax their entire $170T property owned by the middle class. Imagine your grandparents with no real income who now live off Social Security and whatever they’ve accumulated in savings. The gov’t would tax the value of all the assets they’ve collected over their lifetime.”
He warned that this could force people to sell property to cover the taxes, even if they aren’t generating cash flow from those assets.
Beyond Billionaires: The Real Target?
Cardone said the tax, promoted as applying to people with $1 billion or more in assets, would not raise enough revenue if it only affected the top 200 or so billionaires.
“The total net worth of the billionaires in this country is about $8 trillion… 5% of that is what, $40 billion or something. It’s not enough money to change the game,” he said.
Instead, he believes the true goal is to tap into the estimated $170 trillion in total assets held by the middle class.
“What they really want is they want 5% on the middle class net worth, where most of the net worth is $170 trillion,” Cardone said. “They need a way to open that door.”
He emphasized that billionaires can afford to relocate or shield assets, while middle-income earners, like plumbers, HVAC techs, and small business owners, would be left vulnerable.
“They have the money to leave. They can walk away from their homes, their businesses… They get on their private jets and fly wherever the hell they want,” he said.
“The middle class aren’t going to have the lawyers [or] the ability to get up and move.”
Cardone called on Americans across the political spectrum to speak out against the proposal.
“This is a capital gains tax, folks,” he said.
“You need to rise up because this is property seizure. The real target is not 200 billionaires. It’s you. It’s the middle class.”
He also referred to the proposed tax as a “Trojan horse” for broader wealth taxation.
“Say no to the billionaire tax. It’s bullsh*t. They’re coming after your money. Not just mine,” Cardone said.
While supporters of the wealth tax say it’s designed to reduce inequality and hold the richest Americans accountable, Cardone argued the middle class will end up footing the bill.
“This is the first time in the history of the United States of America… that they’re actually trying to get a look at everything you own and tax everything you own,” he said.
What the Proposal Actually Says
According to a report from CNBC’s Inside Wealth, the Billionaire Tax Act would impose a one-time tax of 5% on the total wealth of California tax residents whose net worth is $1 billion or more.
What makes this proposal especially controversial is its retroactive component: the tax would apply to those who are California residents as of Jan. 1, 2026, nearly a full year before the initiative would go to a public vote.
“The reason they did this is obvious,” said Christopher Manes, a tax attorney.
“If they had made the date in November, after passage, you’d have 200 people who could get out in time and save millions of dollars.”
Supporters of the bill, such as the Service Employees International Union-United Healthcare Workers West, say the early cutoff ensures billionaires “can’t avoid responsibility by moving their assets or claiming residency elsewhere.”
Critics argue the timeline is not just aggressive, but potentially unconstitutional.
“On its face, the ship has sailed,” Manes said, referring to the difficulty billionaires would face in relocating and restructuring their assets quickly enough to avoid the tax.
Legal experts expect challenges, particularly from those who leave the state before the measure passes.
Jon Feldhammer, tax partner at Baker Botts, added, “You’re talking about the most portable class in America. They have the means and ability to move very quickly.”
Even so, not every billionaire is opposed. Nvidia CEO Jensen Huang told Bloomberg, “I’ve got to tell you, I have not even thought about it once… whatever taxes I guess they would like to apply, so be it. I’m perfectly fine with it.”
Meanwhile, Gov. Gavin Newsom is reportedly working to defeat the proposal, concerned about economic consequences if wealthy individuals flee the state.
Cardone, however, remains focused on what he views as the broader implications:
“Anybody that has any kind of a position in the economy—you’re a small business owner—you should be greatly, greatly concerned about this tax.”
IMAGE CREDIT: “Grant Cardone“ by Gage Skidmore, via Flickr. Licensed under CC BY-SA 4.0. Image adjusted for layout.