Opposition is growing in California, home to major tech company headquarters, against the proposed “billionaire tax.” Billionaires have even created a group chatroom for “strategic meetings” to block the tax, and moves to relocate residences or major companies out of California are accelerating.
According to the Wall Street Journal on the 10th (local time), California billionaires have created a group chatroom called “Save California” on the private messenger “Signal” to prevent the introduction of the billionaire tax.
The state of California is pushing forward with the so-called “billionaire tax,” which would impose a one-time tax of 5% on assets held by individuals with a net worth of over 1 billion dollars (1.46 trillion Korean won). It has been reported that unrealized gains, such as stock valuation profits, could also be subject to taxation. If the measure proceeds as planned following a public referendum, the tax will apply to California residents as of January 1st.
There are currently 214 billionaires in California. In the chatroom, billionaires are voicing opposition to the tax and proposing alternatives. It has been reported that some have even argued for weakening the relationship between California and the tech industry compared to previous levels.
It has been reported that dozens of tech billionaires, including Palmer Luckey, co-founder of Anduril, David Sacks, former cryptocurrency official in the Trump administration, and Chris Larsen, co-founder of Ripple, have participated. The WSJ reported, “The billionaire tax has united Silicon Valley giants.”
David Sacks criticized, “The billionaire tax takes 5% of the entire net worth,” arguing that the structure of taxing the entire asset rather than income is unfair. Criticisms such as “communism” have also emerged.
Billionaires’ exits from California are also accelerating. Larry Page, co-founder of Google, relocated his related corporation out of California last month. Peter Thiel, co-founder of PayPal, has also leased an office in Miami. Gary Tan, CEO of Y Combinator, stated, “If the wealth tax passes, we are considering relocating to Austin or Cambridge.”
