California needs Reaganomics, not a wealth tax, real estate CEO says

May 13, 2026 - 01:07

A prominent real estate executive is pushing back against California's proposed wealth tax, arguing the state needs a return to Reagan-era economic principles instead. Mauricio Umansky, founder and CEO of The Agency, appeared on a business program to criticize the policy, claiming it would drive more wealthy residents and businesses out of an already struggling state.

Umansky argued that California's current approach to taxation and regulation has failed, leading to a mass exodus of high earners and corporations. He pointed to the state's high cost of living, homelessness crisis, and business climate as evidence that progressive tax policies are not working. Instead, he called for a focus on lowering tax rates and reducing red tape to stimulate growth, a strategy he linked to the economic policies of former President Ronald Reagan.

The proposed wealth tax, which would target the state's richest individuals, has been a hot-button issue in Sacramento. Supporters say it is necessary to fund social programs and address inequality. Opponents, like Umansky, warn it will backfire by pushing capital and talent to lower-tax states like Texas and Florida. The debate highlights a growing divide over how to fix California's fiscal challenges as the state faces a massive budget deficit.