California’s Proposed Wealth Tax Sparks Backlash Among Tech Billionaires
California's controversial 5% wealth tax proposal targeting billionaires has galvanized Silicon Valley's tech elite into organized opposition. The measure, which WOULD apply a one-time levy on individuals with assets exceeding $1 billion, could affect roughly 200 people and generate an estimated $100 billion for state coffers.
Behind closed doors in a Signal group chat titled 'Save California,' prominent figures including Anduril's Palmer Luckey, Trump cryptocurrency advisor David Sacks, and Ripple co-founder Chris Larsen have denounced the plan. The group includes executives with ties to multiple cryptocurrency projects, though no specific digital assets were mentioned in their discussions.
Critics within the group have labeled the proposal as 'Communism' while others highlight its lack of implementation details. The primary concern centers on potential capital flight, with fears that tech founders may relocate from California, taking jobs and economic activity with them.
Some participants advocate for alternative approaches to revenue generation, including closing existing tax loopholes for the wealthy rather than implementing new taxes. The debate reflects growing tensions between California's progressive fiscal policies and its billionaire tech class, several of whom have already begun relocating assets.
