A proposed tax initiative in California is prompting billionaire entrepreneur Peter Thiel to consider relocating from the state. In response to the potential enactment of the California Billionaire Tax Act, Thiel expressed his frustration, which led to a sarcastic comment from Rep. Ro Khanna (D-CA).
The California Billionaire Tax Act seeks to impose a one-time 5% tax on the net worth of individuals with assets exceeding $1 billion. This measure is designed to fund healthcare initiatives aimed at supporting working-class families facing significant cuts to Medicaid. To qualify for next year’s ballot, the proposal requires over 870,000 signatures and is currently in the signature-gathering phase.
On social media platform X, Khanna remarked, “Peter Thiel is leaving California if we pass a 1% tax on billionaires for five years to pay for healthcare for the working class facing steep Medicaid cuts.” He humorously invoked the sentiments of former President Franklin D. Roosevelt, stating, “I will miss them very much,” referencing the historical context of wealthy individuals expressing discontent with taxation.
The New York Times reported that the measure is already influencing some of California’s wealthiest residents, including Thiel, who has previously made headlines for his vocal support of former President Donald Trump. Thiel co-founded both PayPal and Palantir, and his political contributions include a notable $1.25 million donation to Trump’s 2016 campaign. Additionally, Thiel played a role in Trump’s transition team executive committee and has maintained close ties with the administration, securing lucrative government contracts for Palantir.
While it remains uncertain whether the California Billionaire Tax Act will garner the necessary support to appear on the ballot, its implications are already stirring significant reactions among the state’s wealthiest individuals. The debate surrounding the tax highlights ongoing tensions between state policy initiatives aimed at addressing healthcare and the responses of affluent residents who may feel threatened by increased taxation.
As the signature-gathering campaign continues, it will be critical to monitor how this proposal evolves and what further impact it may have on California’s economic landscape and its high-net-worth population.
