US EditionChamath Palihapitiya Warns California Wealth Tax Could Crush Startup Founders: 'It Will Kill Entrepreneurship In California'
Chamath Palihapitiya warns the proposed one-time 5% wealth tax could force founders to pay millions on paper equity, risking bankruptcy and harming California entrepreneurship.
- On Saturday, Chamath Palihapitiya publicly warned that the proposed wealth tax 'will kill entrepreneurship in California' while sharing Rep. Ro Khanna's post.
- Dubbed the California Billionaire Tax Act, the proposal would impose a 5% net-worth levy if adopted by voters next year, prompting billionaires like Peter Thiel and Larry Page to consider leaving California.
- Palihapitiya illustrated that after a $200M write-down in early 2027, a founder with a $40M share still owes $60M, risking bankruptcy in California.
- Wealthy tech entrepreneurs began openly conspiring against Rep. Ro Khanna and discussed primary challenges Saturday, while hedge fund billionaire Bill Ackman warned California's economy faced risks as wealthy residents considered leaving.
- Earlier this month, Gov. Gavin Newsom accused President Donald Trump of favoring billionaires, while Trump and his allies rejected those claims citing GDP growth, falling inflation and market gains.
16 Articles
16 Articles
A looming wealth tax for billionaires is causing concern among California's tech moguls, with several considering leaving the state. Should the proposal become a reality, it could create problems for the state's Democratic governor, Gavin Newsom, says US scholar Dag Blanck. "If he loses these successful tech billionaires, it probably wouldn't bode well for him in the upcoming presidential campaign in 2028."
Wealthy tech execs start ‘openly conspiring’ against Dem lawmaker over ‘modest wealth tax’
A proposed California wealth tax has sent some billionaires scrambling, and on Saturday night, prompted a group of wealthy tech entrepreneurs to begin “openly conspiring” against a Democratic lawmaker who supports it.Dubbed the California Billionaire Tax Act, the proposed ballot measure, if adopted ...
California tech founders unload on a proposed state wealth tax that already has some billionaires preparing an escape. 'I am screwed for life'
"One market correction, nationalization event, or prohibition of divestiture (not at all uncommon during wartime) and I am screwed for life."
Chamath Palihapitiya Warns California Wealth Tax Could Crush Startup Founders: 'It Will Kill Entrepreneurship In California'
Chamath Palihapitiya warns California wealth tax could bankrupt startup founders. Bill Ackman says billionaires may flee state over tax.
California’s Billionire Tax Plan Risks Accelerating Crypto Exodus
The planned 2026 billionaire tax would impose a one-time 5% charge on the net assets of residents whose wealth exceeds $1 billion, including unrealized gains. Key Takeaways California plans a one-time 5% tax on billionaire wealth starting in 2026, including unrealized gains. Crypto and tech leaders warn the policy could accelerate wealth and talent migration. The move deepens the divide between California’s fiscal strategy and federal tax prior…
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