California’s Billionaire Wealth Tax Proposal Draws Crypto Industry Ire
California's proposed wealth tax on billionaires has ignited fierce opposition from cryptocurrency entrepreneurs and tech leaders. The 2026 Billionaire Tax Act would impose a 5% levy on net wealth exceeding $1 billion, including unrealized gains from illiquid assets like startup equity and long-term crypto holdings.
Industry figures argue the policy misjudges modern wealth creation, particularly in ventures where value exists on paper rather than in cash. Chamath Palihapitiya warned the tax could 'kill entrepreneurship' by penalizing founders who take nominal salaries while building equity in their companies.
The debate highlights growing tensions between progressive taxation policies and the liquidity constraints of asset-heavy industries. Proponents maintain the measure WOULD fund critical social programs, while critics contend it risks driving innovation out of the state.
