Steve Forbes has a message for anyone eyeing a federal wealth tax: be careful what you wish for. The Forbes Media chairman and editor-in-chief warned that a national wealth tax could discourage entrepreneurship and destroy asset value, and he thinks the concerns swirling around California's proposal should apply just as much to Washington.

Forbes Warns Against Federal Wealth Tax

Forbes made the comments during a Nov. 11 appearance on Fox Business' "Kudlow," hosted by Larry Kudlow. He pointed out that California Gov. Gavin Newsom opposed the state's wealth tax proposal because it could "push out your good people to other states like Texas or Florida or wherever."

Forbes argued that the same concerns should apply nationally, saying the arguments used against California's wealth tax should also be applied to a federal proposal. He warned that a national wealth tax could become part of Democratic policy discussions heading into 2028 and raised the possibility of a worldwide wealth tax, calling the prospect "that kind of junk."

His core point is that wealth isn't a pile of cash sitting in a vault. Most wealth is held in assets, and its value is what people are willing to pay for those assets. "Wealth is not tangible. Wealth is what people value things at," Forbes said. He warned that a hostile environment for selling assets could destroy value.

Forbes also criticized what he described as a tendency to target successful individuals. "Once you become very successful, you become public enemy number one," he said.

Federal Wealth Tax Debate Gains Attention

The federal debate gained renewed attention after Sen. Bernie Sanders (I-Vt.) pledged to pursue a national billionaire wealth tax despite California voters rejecting Proposition 40. In a Tuesday post on X, Sanders claimed wealthy interests spent $425 million opposing the measure and outspent supporters 250 to 1 on advertising. He wrote, "Your victory is fleeting," promising that Congress would eventually pass a federal tax.

Proposition 40 was a California ballot measure that proposed a one-time 5% tax on the net worth of billionaires exceeding $1.1 billion who lived in the state on Jan. 1, 2026.

Separately, Stanford economists Benjamin Jaros and Joshua Rauh estimated California's proposal could generate $28 billion to $36 billion. However, they projected that further departures by wealthy residents could cost the state $1 billion to $3.5 billion in annual income-tax revenue. If sustained indefinitely, those losses could exceed the tax proceeds by about $39 billion in present-value terms. The healthcare workers union behind the proposal disputed the research.