California gubernatorial candidate Steve Hilton tore through the ‘billionaire tax’ ballot initiative and wants us to return to being a ‘business engine’ on ‘The Bottom Line.’
Silicon Valley’s wealthiest residents are once again threatening to leave California, this time because of a proposed state wealth tax that tech founders warn could change when innovation — and capital — costs home.
The proposal, supported by the Service Employees International Union–United Healthcare Workers West, would impose a one-time 5% tax on California residents’ assets worth more than $1 billion.
Supporters say the revenue could help offset federal health care funding cuts.
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Palmer Luckey, founder of Anduril Industries, spoke against the proposed ballot measure on X. (Kyle Grillot/Bloomberg/Getty Images/Getty Images)
While the measure is still being considered for a nationwide vote in November, some prominent figures in Silicon Valley warn that it could lead to an exodus of founders and capital.
Palmer Luckey, founder of security firm Anduril, said the tax would force “founders like me to sell a lot of our companies” to pay for what he described as “fraud, waste and political favoritism from the organizations pushing this ballot initiative.”
“I made my money from my first company, paid hundreds of millions of dollars in taxes on it, used the rest to start a second company that employs six thousand people and now me and my co-founders have to somehow come up with billions of dollars,” Luckey wrote in X.
Luckey’s comments come as billionaire tech investor Peter Thiel and Google co-founder Larry Page weigh whether to cut ties with the “Golden State” over a proposed ballot measure, according to a New York Times report.
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Peter Thiel, founder and chairman of Palantir, is worth about $27.5 billion and could owe more than $1.2 billion if the measure becomes law in California. (Kiyoshi Ota/Bloomberg/Getty Images/Getty Images)
If the measure qualifies for the November ballot and is approved by voters, it would apply retroactively to anyone who lived in California as of Jan. 1. 2026.
In practical terms, a resident with $20 billion in assets on that date will owe a one-time tax of $1 billion, payable over five years.
Billionaire investor Bill Ackman echoed those concerns, calling California “on the road to killing itself” if the measure moves forward.
“Hollywood is already a toy and now the most productive businessmen will leave, take their tax money and create jobs elsewhere,” wrote a Pershing Square executive in X.
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California Gov. Gavin Newsom previously said he opposes the proposed millionaires’ tax. (Justin Sullivan/Getty Images/Getty Images)
Earlier this month, Gov. Gavin Newsom of California said he opposes the proposed tax on billionaires, while warning against fear of the move.
“It’s not something to be alarmed about, but it’s part of a broader concern and narrative that’s being created in this country of the haves and have-nots, not just income inequality, but wealth inequality,” Newsom told the audience at the New York Times DealBook conference.
