Galaxy Digital Inc. (NASDAQ: GLXY) CEO Mike Novogratz urged shifting the debate on wealth and income taxes from the state and local to federal levels on Monday.
The Federal Debate Impacting Taxation
In an X post, the billionaire business tycoon weighed in on the growing debate about wealth inequality and the idea of taxing the super-rich, stating, “This isn’t going to just go away.”
“While Governors and Mayors seem to be driving the noise right now, this really needs to be a federal debate,” Novogratz argued.
The New York City-based cryptocurrency mogul argued that most taxation occurs at the Federal level and that Americans are more likely to move from one state to another to avoid higher taxes than they are to leave the country entirely.
In 2025, the federal government collected $5.23 trillion in revenue, according to data from the Treasury Department. The primary source of revenue was individual income taxes.
Will California’s Wealth Tax Drive Talent Away?
Novogratz’s remarks come in the wake of a proposed California wealth tax that has sparked controversy. Venture capitalist Chamath Palihapitiya has warned that the tax could potentially force young startup founders into financial ruin, stating that it could “kill entrepreneurship in California.”
On the other hand, Rep. Ro Khanna (D-Calif.) has defended the billionaire tax, despite threats from some of the state’s wealthiest residents to leave if the tax is implemented.
Known as the 2026 Billionaire Tax Act, it seeks to impose a one-time 5% levy on the net worth of billionaires living in the state, aimed at raising $100 billion to fund essential services.
The Growing Wealth Gap
A November report from Oxfam showed the top 0.1% households now control almost a quarter of the U.S. stock market’s value, while the bottom half of households hold barely 1%.
Moreover, households in the top 0.1% now hold 12.6% of U.S. assets, a record high since the Federal Reserve began tracking wealth in 1989
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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