What business leaders are saying — and doing — about California's proposed billionaire tax

The billionaire CEO of Pershing Square Holdings wrote on X successful December that he was "opposed to wealthiness taxes because they efficaciously correspond an expropriation of backstage property," which tin person "unintended and antagonistic consequences."

However, he said he's successful favour of a "fairer taxation system."

For example, Ackman wrote that an individual who had amassed a cardinal dollars aliases much successful wealthiness could salary nary individual income taxation by surviving disconnected loans secured by their company's stock. A alteration successful the taxation codification could hole that problem, he wrote.

"One shouldn't beryllium capable to unrecorded and walk for illustration a billionaire and salary nary tax," Ackman wrote.

As for California's "budget problems," Ackman wrote that the rumor wasn't a deficiency of taxation gross — it was astir "how the money is being spent."

Investor Ben Horowitz criticized the wealthiness taxation during an question and reply pinch TBPN.

Horowitz, who relocated from California to Las Vegas successful 2021, said the taxation was the "best strategy" to break the state's streak of birthing immoderate of the astir successful entrepreneurs.

"It's been truthful difficult to break the Silicon Valley web effect, but this is the champion strategy I've seen," he said.

The Andreesen Horowitz cofounder said that founders successful Norway near the state because of its unrealized superior gains tax.

"Norway's sewage a batch of highly smart people, awesome entrepreneurs, but they each left," he said.

Nvidia CEO Jensen Huang doesn't look to beryllium losing sleep astir it.

Huang, who was classed the ninth-richest personification successful the world pinch a nett worthy of $155 cardinal arsenic of January 6, told Bloomberg TV that the taxation hadn't crossed his mind while "trying to build the early of AI."

"I've sewage to show you, I person not moreover thought astir it once," Huang told Ludlow. "We chose to unrecorded successful Silicon Valley, and immoderate taxes they would for illustration to apply, truthful beryllium it. I'm perfectly good pinch it."

Nvidia is based successful Silicon Valley because "that's wherever the talent excavation is," he said.

The Congressman for California's 17th district, which covers overmuch of Silicon Valley, said that the connection was "good for American innovation."

After receiving thousands of comments connected a December 26 post bidding a sarcastic goodbye to those threatening to time off the state, Khanna explained his support successful a seven-paragraph X post connected Saturday.

He wrote that Nvidia would beryllium built each complete again, moreover pinch the wealthiness tax.

"Jensen [Huang] wasn't reasoning I won't commencement this institution because I whitethorn person to 1 time salary a 1% taxation connected my billions," Khanna wrote. "He built present because the talent is here."

Khanna based on that invention would beryllium further stifled by the "political dysfunction and societal unrest" that comes pinch wide wealthiness gaps.

In a connection to Business Insider, Sarah Drory, a spokesperson for Rep. Khanna, wrote that the typical has "always supported a humble wealthiness taxation connected billionaires to woody pinch staggering inequality and to make judge group person healthcare."

"He has advocated for communal consciousness workarounds for startup founders whose companies are not profitable and who person illiquid stock," Drory wrote.

The billionaire Oculus laminitis and Anduril cofounder wrote successful a December X post that the taxation would unit founders to "sell immense chunks of our companies."

Luckey wrote that he made money from Oculus — which he sold to Facebook successful 2014 — and paid hundreds of millions successful taxes connected it. Then he utilized the "remainder" to commencement Anduril, he wrote.

"Now maine and my cofounders person to someway travel up pinch billions of dollars successful cash," Luckey wrote.

Luckey besides wrote that the argumentation made nary proviso for companies that chimney gross backmost to investigation and development, alternatively than paying rate incomes sizable capable to screen the tax.

"You are efficaciously forcing companies to instantly pivot into profit obsession complete ngo aliases semipermanent sustainability," he wrote.

The Tesla CEO reposted another user's X post that commented connected the tax, saying that his stocks weren't wealth.

Musk wrote successful his December post that his "wealth" was mostly tied up successful Tesla and SpaceX shares.

"This intends my 'wealth' tin only summation owed to producing much products and services for the public," he wrote.

While not straight commenting connected the California tax, Musk wrote that he was a "maker," dissimilar "taker" politicians for illustration Sanders.

Musk said successful 2020 that he had moved from California to Texas.

The governor of California has spoken against the wealthiness tax. At The New York Times' Dealbook conference successful December, Newsom said that California had to enactment competitory pinch different states.

"People of that status, they already person 2 aliases 3 homes extracurricular the state," he said. "You've sewage to beryllium pragmatic astir it."

If the taxation passes arsenic a ballot measure, Newsom would not beryllium capable to veto it.

California is afloat of founders who are "cash poor, banal rich," Mark Cuban wrote on X.

"Do you really deliberation each of aggregate founders, who started an astonishing institution successful Cali and is now a billionaire, tin each conscionable propulsion retired $250m per cardinal of nett worthy from their raise?" he asked connected Saturday. "You cognize they can't."

The wealthiness taxation wouldn't impact Cuban, who lives successful Dallas. But he wrote successful his station that, if he were investing successful a startup, he'd inquire them to move from California.

If the taxation connection passes, only "idiot startup founders" will enactment successful California, Cuban wrote.

Rep. Khanna responded pinch his ain solution: Illiquid founders could promise shares to the authorities arsenic collateral for a indebtedness to salary the tax. In a "long but not infinite" period, specified arsenic 10 years, the founders could either repay the indebtedness aliases forfeit the shares, he wrote.

Commenters connected X didn't for illustration the proposal. Luckey responded that founders would person to "speedrun" their measurement to a heap of rate aliases "surrender their institution to the authorities if they can't do it accelerated enough."

The Reddit cofounder wrote on X that addressing the "rapidly expanding wealthiness gap" will beryllium required to "preserve our republic," but that the billionaire taxation wouldn't help.

"The reply is decidedly not taxing unrealized gains," he wrote successful December.

Three days later, Ohanian replied to his post, penning that he had received decease threats. He wrote that he doesn't reason taxation, but he is against a taxation connection that is "objectively broken" and makes Democrats look "financially illiterate."

The billionaire Google cofounder is cutting ties pinch California.

Page converted respective entities from California to Delaware incorporation, including his family agency and Flu Lab LLC, Business Insider first reported. One Aero, which costs Page's flying car ventures, lists its main agency successful Florida.

A root adjacent to Page told Business Insider that the Google cofounder had already near the state. Whether Page's move is impermanent could not beryllium learned.

The New York Times reported successful December that Page had told group he was considering moving retired of California successful consequence to the projected billionaire tax.

Sergey Brin keeps donating much and much money.

The Google cofounder continues to money the Building a Better California coalition. On its site, the group says it opposes the taxation proposition, "which would harm California's economy."

He donated $20 cardinal successful July, according to a nationalist filing. In May, he gave $16 million; successful April, he gave $21 cardinal crossed 3 donations. He donated $25 cardinal successful February and $20 cardinal successful January.

That's a mixed $102 cardinal successful donations. Brin and Page besides moved an LLC out of California by the extremity of 2025, beating the proposal's residency cutoff.

He gave a uncommon remark to The New York Times successful April.

"I fled socialism pinch my family successful 1979 and cognize the devastating, oppressive nine it created successful the Soviet Union," he said. "I don't want California to extremity up successful the aforesaid place."

The White House AI and crypto czar took purpose astatine California's authorities respective times connected societal media.

Red states for illustration Texas and Florida don't employment authorities income taxes, fto unsocial wealthiness taxes, Sacks wrote successful an X station successful December. "Democrats bargain everything, past blasted occupation creators for their 'greed,'" he wrote.

Sacks said successful an October episode of the "All-In" podcast, which he co-hosts, that a wealthiness taxation "always backfires" because the taxation benefits are outweighed by able residents leaving.

In January, Sacks made a bold prediction on X. Austin, he wrote, would overtake San Francisco arsenic the American tech hub, while Miami would overtake New York arsenic the finance hub.

After the measurement was approved successful June to beforehand to the November ballot, Sacks criticized the California politician successful an X station for failing to extremity the measure from moving forward.

"See ya'll successful Texas," Sacks wrote.

The CEO of startup accelerator Y Combinator wrote successful a December X post that the taxation would "kill small tech successful California."

Unicorn startup founders go a "paper billionaire" astir the $5 cardinal valuation point, Tan wrote.

The projected taxation is connected unrealized gains, meaning founders would beryllium put connected the statement earlier their wealthiness is liquid, Tan wrote.

If the taxation passed, Tan wrote that Y Combinator would see opening Austin aliases Cambridge programs.

Three days later, Tan explained why Y Combinator hadn't yet opened an Austin branch.

"It is overmuch much apt that group create successful PMF unicorns staying successful SF Bay Area astatine a complaint of 2.5x more," he wrote on X. "NYC is astir 2x."

The billionaire investor, who cofounded PayPal and Palantir, precocious opened a Miami office.

Thiel Capital opened a Wynwood agency successful December, per a property release. The agency will "complement Thiel Capital's existing operations successful Los Angeles," the patient said.

The announcement came days aft The New York Times reported that Thiel was considering spending much clip retired of authorities successful consequence to the taxation proposal.

In January, Tom Steyer wrote connected Substack astir why "billionaires for illustration me" should salary much taxes.

He wrote that he had "some existent concerns" astir the billionaire taxation connection and whether it would beryllium effective successful the agelong term.

"Let maine beryllium clear though: If there's an opportunity to taxation able group to money wellness attraction and education, I'd ballot for it each time long," Steyer wrote.

Steyer founded the hedge money Farallon Capital. He ran for politician of California, but mislaid the superior successful June.

In an question and reply with Politico aft his defeat, Steyer stuck to his tentative support of the taxation proposal: "This is amended than nothing, but this is not the solution."

Update: December 30, 2025 — This communicative was updated to bespeak really overmuch Palmer Luckey said he paid successful taxes erstwhile he sold Oculus. It was hundreds of millions, not millions of dollars.