California's proposed wealth tax is drawing sharp criticism from some high-profile residents, and at least one may have already voted with his feet.

David Sacks, former Chief Operating Officer of PayPal Holdings Inc. (PYPL) and currently White House Special Advisor for AI and Cryptocurrency, dropped a cryptic hint over the weekend that he might have already left California over the state's proposed "Billionaire Tax." The measure aims to patch the state's healthcare budget shortfall by imposing a one-time levy on net worth.

A 5% Wealth Confiscation?

In a Saturday post on X, Sacks didn't mince words about the proposal. He framed it not as an unrealized gains tax, but as something more sweeping and problematic.

"To be clear, the Billionaire Tax Act in California is not (just) an unrealized gains tax. It's a 5% across-the-board confiscation of net worth. It applies even if one has already realized and paid taxes on the entire amount," Sacks wrote.

His comments came in response to Florida Governor Ron DeSantis, who had criticized the proposed tax and predicted it would backfire on California.

Then things got interesting. Patrick Bet-David, CEO of Valuetainment Media, asked Sacks at what point he would consider leaving California. Sacks's response? "Who said I haven't?"

An Exodus in the Making?

The Billionaire Tax Act has ignited fierce debate in California, with several of the state's wealthiest residents signaling they might bolt if it passes. Hedge fund billionaire Bill Ackman has been particularly vocal, warning that California is "on a path to self-destruction" due to aggressive tax policies. He suggested the latest proposal could further damage the state's economic environment.

The question now is whether these are empty threats or the beginning of a genuine wealth migration southward and eastward. If Sacks has indeed already left, he may be the canary in the coal mine.