Silicon Valley Billionaires Rally Against California Wealth Tax Proposal

Silicon Valley Billionaires Rally Against California Wealth Tax Proposal

Silicon Valley's wealthiest individuals are gearing up to oppose a proposed California ballot measure that would tax billionaires. The first major donation to fight the so-called billionaires tax was made by Peter Thiel, who contributed $3 million to a committee working against the initiative. This donation is expected to be the first of many from Silicon Valley leaders aiming to defeat the wealth tax and other tax proposals in 2026.

The California Business Roundtable, a state business lobby, is leading the effort to defeat the proposed wealth tax. The lobby group anticipates spending over $75 million to oppose the measure and is reaching out to donors across the state for support. The initiative, put forward by a state health care union, aims to tax California residents worth more than $1 billion at 5% of their assets retroactively.

Governor Gavin Newsom has voiced opposition to the wealth tax, citing concerns that it could prompt billionaires to leave the state. The initiative must gather nearly 900,000 signatures to appear on the state ballot in November. Peter Thiel's significant donation marks his largest disclosed political contribution since the 2022 midterm election cycle.

Thiel, who has businesses in Los Angeles, has been among the billionaires considering relocating due to the proposed tax measure. Other wealthy donors, including Sergey Brin of Google, are also exploring strategies to defeat the billionaires tax proposal. The opposition to the tax initiative is expected to intensify as the campaign progresses, with various groups and individuals mobilizing to counter the proposed measure.