Tech Billionaires Consider Leaving California Amid Proposed 5% Wealth Tax
Tech titans in California are expressing significant concerns over a proposed wealth tax that could impact their financial futures. This initiative, backed by the Service Employees International Union–United Healthcare Workers West, aims to impose a one-time 5% tax on Californians with assets exceeding $1 billion. Supporters argue that the funds generated would help alleviate cuts in federal healthcare funding.
Silicon Valley Leaders Sound Alarm
Amid ongoing discussions about the measure, prominent figures from Silicon Valley are suggesting that it may lead to a flight of wealth and innovation away from California. For instance, Palmer Luckey, co-founder of Anduril Industries, voiced strong opposition on social media, asserting that the tax could compel founders to sell portions of their companies to cover the tax burden.
- Palmer Luckey, co-founder of Anduril Industries
- Peter Thiel, co-founder of Palantir
- Larry Page, co-founder of Google
- Bill Ackman, billionaire investor
Impact on Billionaire Residents
The proposed measure is expected to apply retroactively to anyone residing in California as of January 1, 2026. For example, an individual with $20 billion in assets would owe a significant $1 billion, to be paid over five years. Such a tax burden has raised alarms among California’s wealthiest residents.
Billionaire investor Bill Ackman expressed his concerns on social media, suggesting that the initiative could lead to “self-destruction” for the state. He warned that Hollywood and other entrepreneurial sectors might suffer as business leaders reconsider their residency in California.
Government Response
California Governor Gavin Newsom has publicly opposed the proposed billionaire tax. He cautioned, however, that the conversation surrounding wealth inequality is becoming increasingly prominent in the nation’s dialogue. Newsom noted the need for a balanced perspective, encouraging residents to avoid panic over the initiative.
With the November ballot approaching, the implications of this wealth tax remain a significant concern for many of California’s most influential figures.
