Tech billionaires are making plans to bail on California ahead a possible ballot measure that would tax their assets to help pay for healthcare.
The Thiel Foundation and Google parent Alphabet didn’t immediately respond to requests for comment. Representatives for Thiel and Page did not respond to the Times.
Tech investor Chamath Palihapitiya has warned on the risk of a wealth tax in California, saying it will eventually bankrupt the state.
Backers of the potential wealth tax must still gather enough signatures before it can qualify for the ballot in November 2026.
The healthcare union pushing the measure, the Service Employees International Union-United Healthcare Workers West, estimated the wealth tax could raise $100 billion in revenue and offset federal cuts.
But California Gov. Gavin Newsom, a Democrat who is also considered a top presidential hopeful, has come out against it.
And while leading AI companies are based in California, new data centers and AI infrastructure are being built outside the state, where land, water and electricity are more available.
Democratic Rep. Ro Khanna, who represents part of Silicon Valley, said tax dollars helped build the AI industry and dismissed the idea that tech entrepreneurs wouldn’t start companies in the state due to a 1% tax, adding that innovators are drawn to the area’s talent.
Still, he acknowledged lack of accountability and fraud concerns over state tax dollars, saying Sacramento needs anti-corruption measures.
Blake Scholl, founder and CEO Boom Supersonic, pointed to the billions spent by California for a high-speed rail project that’s over-budget and behind schedule.
