Are you a realtor in a state with low taxes? Bond expert and DoubleLine founder Jeffrey Gundlach wants to get in touch.
Gundlach tweeted on Saturday about concerns over what he called California’s “incompetent governance” and “massive income tax increases.”
Gundlach’s investment firm DoubleLine, which had $137 billion in assets under management as of June 30, is based in Los Angeles, where two laws taxing the wealthy are on the table.
On November 3, the state is holding a vote on Prop 15, a ballot measure that, if passed, would increase property taxes on most commercial properties worth more than $3 million, according to the state’s voter guide. The money would be used to fund local governments and schools.
The state’s legislative body is also considering a bill that would raise taxes for millionaires. If passed, the law would levy a 1 percent tax on individual incomes over $1 million, a 3 percent tax on incomes over $2 million, and a 3.5 percent tax on incomes over $5 million, the bill shows.
This is all amid a pandemic when most in the finance industry are still working from home, rendering their office spaces less-than-valuable. California has also had its fair share of climate calamity in recent months: Wildfires have forced evacuations and significantly reduced air quality in some areas.
So Gundlach is considering leaving the state, following the example of “3 smart guys”: Elon Musk, Joe Rogan, and Ben Shapiro, who have all moved their businesses elsewhere. His primary concern, though, appears to be the taxes. Gundlach tweeted Saturday that Sacramento’s response to “incompetent governance” was “wealth and massive income tax increases on job creators (AKA ‘the wealthy’).”
“Should I align with 3 smart guys, or Sacramento? Hmmm,” he added.
He followed that question up with now-deleted tweets asking for realtors in “low tax, well governed states” to give him a call, and thanking followers for the “great move out of California suggestions.”
On Sunday, Gundlach tweeted a photo of himself sporting a cowboy hat with no explanation, which some followers took as a hint about a potential move.
[II Deep Dive: Real Estate Investors View Small Cities as Big Opportunities]
DoubleLine is housed on the 18th floor of the Wells Fargo Tower in Los Angeles, which is owned by Brookfield Associates, its website shows. Although both Brookfield and CBRE real estate listings show that several suites in the building are up for grabs, the 18th floor is not available for rent... yet.
A spokesperson for DoubleLine did not return an email seeking details as to whether the company is planning a move.
Bloomberg reported Friday that $24 billion hedge fund Canyon Partners is considering leaving California for Texas for similar reasons.