Tax Talk: Should the Rich Pay More?

Mike Novogratz, CEO of Galaxy Digital, has some thoughts on the debate surrounding taxes and wealth.

National vs. State-Level Taxation

Novogratz believes that discussions about taxing the super-rich should happen at the national level, not just in states like California.

"This isn't a small issue that will fade away. Most taxes are set by the federal government, so that's where the big discussions should happen."

He also thinks people are more likely to move within the U.S. to avoid higher taxes than they are to leave the country.

California's Proposed Billionaire Tax

This comes as California considers a new tax: the 2026 Billionaire Tax Act. This tax would take 5% of the net worth of billionaires living in California, aiming to raise $100 billion for important services.

Mixed Reactions

• Chamath Palihapitiya, venture capitalist, worries that this tax could hurt young startup founders and kill the spirit of entrepreneurship.
• Rep. Ro Khanna supports the idea, even if some wealthy people threaten to leave the state.

The Wealth Gap

A recent report from Oxfam highlights the wealth gap:

• The top 0.1% of households control almost a quarter of the U.S. stock market's value.
• The bottom half of households hold barely 1%.
• The top 0.1% also hold 12.6% of U.S. assets, the highest since the Federal Reserve started tracking wealth in 1989.

The Big Question

Should the rich pay more in taxes? And if so, who should decide that?