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Scott Jennings believes $70 billion fraud problem is driving Cali’s proposed wealth tax

December 31, 2025 | | Print Article

CNN conservative talking head Scott Jennings slammed California’s proposed wealth tax during a discussion this Monday.

The discussion began with host Abby Phillip arguing that the purpose of the widely panned tax is “to use that revenue in order to offer improvements for the average Californian.”

Jennings responded by first asking why California is pursuing a billionaire’s wealth tax versus the millionaire’s wealth tax being pursued in Washington State:

“Why pick a billion?” he said. “Why in Washington did you pick a million? Why don’t you pick 999,999? Why not pick 500,000? Why pick five percent? Why not six? Why not 10? Why not 20? Why not 50? The thing is, it’s all arbitrary just to attack people that we hate.”

Jennings then disputed Phillip’s assertion that the purpose of the tax is to help ordinary people.

“And it is not for the public benefit,” he argued. “In California, the state auditor just found $70 billion in fraud going on in the state. The reason they need a wealth tax is to cover up the fraud. The hole in the budget in California is due to fraud. That’s why they’re trying to tax people.”

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He wasn’t wrong about the auditor.

According to the New York Post, the state’s nonpartisan auditor recently failed eight state agencies, calling them “high-risk” agencies that have exhibited serious “waste, fraud, abuse, or management.”

“The report found, for example, that massive payment error rates in the delivery of food assistance benefits could cost the state $2.5 billion in federal funds,” the Post notes. “It also discovered that fraud and improper payments for unemployment benefits continue to cost the state billions.”

Later in CNN’s Monday-night segment, liberal talking head Jamal Simmons argued that the wealth tax is necessary “to make sure our kids have a chance to have the best schools and get the best start in life.”

Jennings still remained unconvinced.

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“California is going to spend the money well,” he said. “Good luck, Jamal. I wouldn’t hold my breath.”

To California’s slight credit, Rep. Ro Khanna told CNBC on Tuesday that he’s launched an investigation into state-level fraud precisely to make sure that money from a billionaire’s wealth tax isn’t wasted.

“If you want, as I do, to advocate for Medicare for all, to advocate for higher taxes, you have to have the public trust,” he said.

“People need to have a receipt for what their money is going toward. You can’t have corruption in the government and waste in the government and then expect people to support the progressive ideals that I have,” he added.

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Khanna wasn’t wrong.

He added that he’s looking for a Republican to partner with, and that he’s hoping to commission a bipartisan Government Accountability Office report on his state’s fraud and even hold hearings.

Khanna continued his remarks to CNBC by saying that he wants the investigation to cover not only the fraud in California and Minnesota, but also the rest of the country.

“It’s not going to be a blue state or a red state thing,” he said. “Obviously, there have been the reports in Minnesota and California, but it’s beyond that. We need to look at state government and making not just an issue against blue states, but to expose where this fraud is happening and what we can do about it.”

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Vivek Saxena
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