SACRAMENTO, Calif. (Diya TV) — Silicon Valley billionaires are stepping up their fight against a proposed California wealth tax that could reshape how the state taxes its richest residents. With millions of dollars already flowing into opposition efforts, the political battle over the so-called billionaires tax is entering a decisive phase.
Some of the wealthiest figures in the tech industry are moving quickly to block a California ballot measure that would impose a new tax on billionaires. The proposal seeks to tax residents worth more than $1 billion at 5 percent of their assets. Supporters want it on the November ballot. The measure has triggered alarm among ultrawealthy Californians. Many fear it could sharply reduce their fortunes and encourage an exodus of high earners from the state. In response, business leaders have begun funding an aggressive campaign to defeat the proposal.
The first major donation became public last week. Peter Thiel, a venture capitalist and the chairman of Palantir, donated $3 million to a political committee opposing the tax. The contribution went to the California Business Roundtable, a powerful state business lobby.
The donation, made on Dec. 29, marks Thiel’s largest disclosed political gift since the 2022 midterm elections. During that cycle, he spent more than $35 million backing candidates aligned with the Make America Great Again movement. While Thiel did not earmark the money solely for the wealth tax fight, the funds will support efforts to block the proposal. The California Business Roundtable expects to play a leading role in the campaign. Some opponents estimate that more than $75 million could be spent to defeat the measure.
Rob Lapsley, president of the California Business Roundtable, said the group is casting a wide net for donors across the state. He described the effort as a major push involving hundreds of business leaders. Opponents plan to fight not only the wealth tax but also a second local tax proposal. They see the measures as harmful to California’s economy and business climate. Gov. Gavin Newsom, a Democrat, also opposes the initiative. He has called it bad policy and warned that it could drive billionaires and investment out of California.
The ballot measure comes from a state health care union. Supporters say it would help offset federal budget cuts that threaten California’s health care system. The proposal would tax individuals worth more than $1 billion, even if they later leave the state. It would apply retroactively to anyone who lived in California as of Jan. 1. Before voters see it, supporters must collect nearly 900,000 signatures to qualify for the ballot. Critics argue the plan is legally risky and economically damaging. They say it could discourage innovation and push wealthy residents to relocate.
The fight has sparked intense debate among California’s richest donors. Some have commissioned polls to test voter support for the measure. Republican strategist Mike Murphy said he is conducting polling for several interested parties to assess public opinion. Different camps have emerged. One group, which includes investor Ron Conway, wants to confront the tax proposal directly in November. Another group favors a familiar California tactic: placing rival tax measures on the ballot to confuse voters and split support.
Sergey Brin, a co-founder of Google, has also entered discussions about defeating the wealth tax. Two people briefed on the matter said Brin may make significant donations of his own. Brin is among several tech billionaires who took steps to cut ties with California ahead of the Jan. 1 deadline. Thiel has done the same. His family investment firm, Thiel Capital, announced plans to open an office in Miami. Campaign records now list him as based in Florida.
