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Tech and Crypto Leaders Escalate Pushback to California’s Proposed 5% ‘Billionaire Tax’

The initiative has not qualified for the ballot.

Overview

  • The proposal would apply a one-time 5% charge in 2026 to wealth above $1 billion, explicitly counting private-company equity and cryptocurrency.
  • Founders including Palmer Luckey and Dylan Field warn the structure could force sales of illiquid stakes to raise cash for payment.
  • David Sacks said Craft Ventures opened an office in Austin, while reports indicate Larry Page shifted several LLCs to Florida.
  • Backers must gather nearly 900,000 signatures to place the measure on the November ballot, and it remains a campaign effort at this stage.
  • Crypto-focused voices argue that combined tax and licensing pressures in California could drive Web3 projects to launch, hire, and list in other jurisdictions.