President Donald Trump's artificial intelligence and crypto czar David Sacks on Wednesday criticized California's proposed wealth tax on billionaires, calling it a "scary direction" for the U.S.
"This is this is not a tax, this is an asset seizure," the venture capitalist told CNBC's "Squawk Box" from the World Economic Forum in Davos, Switzerland.
"Never been anything like this before in American history," he added.
The Billionaire Tax Act, which is currently collecting signatures to be added to the November ballot in California, proposes a one-time 5% tax on the total wealth of residents with $1 billion or more in net worth. The tax would apply to California residents as of Jan. 1, 2026.
Sacks insisted that "it's not a one-time, it's a first time."
"And if they get away with it, there'll be a second time and a third time. And this will be the beginning of something new and different in this country, which is asset seizure," he said.