California's Billionaire Tax Faces Ballot Showdown as Big Tech Tycoons Launch $100 Million Opposition Campaign

5% One-Time Tax on Billionaires With Over $1 Billion
Billionaire Tax Debate Shakes Silicon Valley
Big Tech Billionaires Like Thiel and Luckey Lead Opposition

As the state of California in the United States moves forward with the introduction of a 'billionaire wealth tax,' prominent figures in the technology industry centered in Silicon Valley are launching organized efforts to block it. Their concerns are that a high property tax could undermine the innovation ecosystem and trigger a large-scale capital outflow. On January 12, Yonhap News, citing the New York Times (NYT), reported that Peter Thiel, a venture capitalist and co-founder of data analytics company Palantir, recently donated $3 million to the 'California Business Roundtable.' This organization is preparing a campaign to oppose the so-called 'billionaire tax' ballot initiative currently under discussion in California.

As the state of California in the United States moves forward with the introduction of a 'billionaire wealth tax,' prominent figures in the technology industry centered in Silicon Valley are launching organized efforts to block it. ChatGPT generated image

Rob Lapsley, president of the Roundtable, stated, "We are reaching out broadly to business leaders and donors across the state, and Peter Thiel is just one of hundreds of donors." The NYT reported that at least $75 million (approximately 109.5 billion won) is expected to be poured into the campaign opposing the billionaire tax.

In relation to this, the Wall Street Journal (WSJ) also reported that major figures in Silicon Valley are gathering in a private online chatroom called 'Save California' to share their grievances. Dozens of billionaires are said to be participating in this chatroom, including Palmer Luckey, co-founder of defense startup Anduril, and Chris Larsen, co-founder of cryptocurrency company Ripple.

The Move to Leave California Becomes Visible Ahead of the Billionaire Tax Ballot

The movement to leave California to avoid the tax burden is also becoming more visible. Google co-founders Larry Page and Sergey Brin are reportedly looking for new homes in Florida, while some venture capitalists have already relocated or are considering moving. Venture investor Chamath Palihapitiya claimed on social media that "the mere discussion of the billionaire tax has already caused about $1 trillion in capital to leave California."

Nvidia CEO Jensen Huang. Photo by AFP Yonhap News

In this context, past remarks by NVIDIA CEO Jensen Huang are also drawing renewed attention. In several interviews, CEO Huang has cited California's open environment and concentration of talent as reasons for its growth as a center of technological innovation, but he has also expressed concerns that continued excessive regulation and cost burdens could drive companies and talent to other regions. Industry insiders note that his comments are being cited symbolically in connection with the current billionaire tax controversy. However, he recently stated, "We chose to live in Silicon Valley, and whatever taxes they impose, we will accept them as they are," adding, "I do not care at all."

The U.S. Political Community Is Closely Watching the Ballot's Fate and Outcome

Discussions on California's billionaire tax began in earnest in November of last year. The Western branch of a healthcare union and progressive politicians have drafted a ballot initiative to impose a one-time 5% tax on the wealth of individuals with a net worth of $1 billion (about 1.4 trillion won) or more. The plan is to use the tax revenue to restore funds to Medicaid (health insurance for low-income individuals) that were cut during the Trump administration.

To put this measure to a public vote in November, approximately 875,000 signatures are required. Currently, it is estimated that about 200 billionaires (with a net worth of $1 billion or more) live in California, mostly centered around Silicon Valley. The success and outcome of this ballot initiative are expected to have a significant impact on tax policy and the technology industry landscape across the United States.