Peter Thiel Donates Significantly to Oppose California’s Billionaire Wealth Tax
Peter Thiel, the co-founder of Palantir, has made a notable political donation of $3 million. This contribution aims to oppose California’s proposed Billionaire Wealth Tax, marking Thiel’s largest political gift since the 2022 midterm elections.
Thiel Takes Action Against California’s Billionaire Wealth Tax
The donation was made to the California Business Roundtable on December 29, 2023. This Sacramento-based group is influential, advocating for large employers and corporate interests. Thiel’s contribution represents the first publicly disclosed seven-figure donation aimed at opposing the billionaire tax proposal.
Proposed Billionaire Wealth Tax Details
The California Billionaire Tax Act, scheduled for 2026, would impose a one-time 5% tax on individuals with a net worth exceeding $1 billion. This tax primarily targets various assets, such as:
- Privately held businesses
- Stocks
- Bonds
- Art and collectibles
- Intellectual property
Real estate and certain retirement accounts would not be included. If voters approve the measure, it would apply to all California residents as of January 1, 2026, with payment beginning in 2027.
Potential Impacts on California’s Wealthy
Thiel’s move indicates a shift towards active resistance against the proposed tax instead of remaining passive. The billionaire class, including notable figures such as Chamath Palihapitiya and Bill Ackman, has expressed concern. Many are considering relocating to other states to avoid potential tax implications.
Opposition and Future Organizing Efforts
The California Business Roundtable, led by President Rob Lapsley, is expected to play a key role in organizing against this initiative. The group is actively seeking significant financial backing to counter the tax, which is seen as detrimental to California’s business environment and innovation.
Political Landscape and Signature Gathering
Interestingly, even Democratic Governor Gavin Newsom has spoken against the billionaire tax, labeling it poor policy. The initiative still requires nearly 900,000 valid signatures to be placed on the November ballot. The campaign against the tax is anticipated to cost around $75 million, indicating a significant political battle ahead.
As these developments unfold, Thiel’s significant donation may serve as the catalyst for a broader movement against California’s proposed Billionaire Wealth Tax.
