California's Tech Titans Face Off Over Billions as State Weighs Billionaire Tax
A contentious battle is brewing in California over a proposed tax on billionaires – the tech elite are divided on whether they should foot the bill or flee to more favorable states. The tax, spearheaded by labor union Service Employees International Union-United Healthcare Workers West, would require California residents worth more than $1 billion to pay a one-off 5% tax on their assets, aimed at funding education, food assistance, and healthcare programs in the state.
While some Silicon Valley figures have threatened to leave California and take their businesses elsewhere, citing lower taxes and more favorable business environments, others are more willing to put up with the tax. Jensen Huang, CEO of Nvidia, whose net worth is nearly $159 billion, took a defiant stance this week, saying he's "perfectly fine" with the tax.
"We chose to live in Silicon Valley," Huang said. "And whatever taxes I guess they would like to apply, so be it." His comments put him at odds with fellow tech billionaire Larry Page, Palantir co-founder Peter Thiel, and venture capitalist David Sacks, all of whom have announced plans to leave California for tax-friendly states like Florida and Texas.
The proposed tax could raise billions of dollars for the state, according to Suzanne Jimenez, chief of staff for SEIU-UHW. "What remains undeniable is the underlying unfairness of the current system," she said. "Regular working people pay higher effective tax rates than the wealthiest Americans … Asking those who have benefited most from the economy to contribute more – particularly to stabilize health care systems under direct threat – is a reasonable step."
However, not everyone shares Jimenez's view. Governor Gavin Newsom has expressed opposition to the wealth tax, saying it's unlikely to happen. Newsom claims that states can't isolate themselves from economic trends and must compete globally.
California Representative Ro Khanna, who championed the idea of a wealth tax, predicts that tech billionaires will stay put despite the tax. "A billionaire tax is good for American innovation," he said. "It would spread the wealth to other sectors."
In response to critics, Khanna tweeted: "I echo what FDR said with sarcasm of economic royalists when they threatened to leave, 'I will miss them very much.'"
As tensions rise, some billionaires have already made their intentions clear. Elon Musk, the world's richest person, departed for Texas in 2020 and has since shifted several companies' headquarters there to avoid paying millions in taxes.
Other tech billionaires have followed suit. Palantir co-founder Joe Lonsdale moved to Austin in 2020, while Larry Ellison transitioned Oracle's headquarters to Nashville. Michael Dell, the founder of Dell Technologies, has long lived in Texas.
While some see this exodus as a loss for California, others believe it could be an opportunity for innovation and growth. After all, as Jensen Huang said, "Not this person. This person is trying to build the future of AI."
A contentious battle is brewing in California over a proposed tax on billionaires – the tech elite are divided on whether they should foot the bill or flee to more favorable states. The tax, spearheaded by labor union Service Employees International Union-United Healthcare Workers West, would require California residents worth more than $1 billion to pay a one-off 5% tax on their assets, aimed at funding education, food assistance, and healthcare programs in the state.
While some Silicon Valley figures have threatened to leave California and take their businesses elsewhere, citing lower taxes and more favorable business environments, others are more willing to put up with the tax. Jensen Huang, CEO of Nvidia, whose net worth is nearly $159 billion, took a defiant stance this week, saying he's "perfectly fine" with the tax.
"We chose to live in Silicon Valley," Huang said. "And whatever taxes I guess they would like to apply, so be it." His comments put him at odds with fellow tech billionaire Larry Page, Palantir co-founder Peter Thiel, and venture capitalist David Sacks, all of whom have announced plans to leave California for tax-friendly states like Florida and Texas.
The proposed tax could raise billions of dollars for the state, according to Suzanne Jimenez, chief of staff for SEIU-UHW. "What remains undeniable is the underlying unfairness of the current system," she said. "Regular working people pay higher effective tax rates than the wealthiest Americans … Asking those who have benefited most from the economy to contribute more – particularly to stabilize health care systems under direct threat – is a reasonable step."
However, not everyone shares Jimenez's view. Governor Gavin Newsom has expressed opposition to the wealth tax, saying it's unlikely to happen. Newsom claims that states can't isolate themselves from economic trends and must compete globally.
California Representative Ro Khanna, who championed the idea of a wealth tax, predicts that tech billionaires will stay put despite the tax. "A billionaire tax is good for American innovation," he said. "It would spread the wealth to other sectors."
In response to critics, Khanna tweeted: "I echo what FDR said with sarcasm of economic royalists when they threatened to leave, 'I will miss them very much.'"
As tensions rise, some billionaires have already made their intentions clear. Elon Musk, the world's richest person, departed for Texas in 2020 and has since shifted several companies' headquarters there to avoid paying millions in taxes.
Other tech billionaires have followed suit. Palantir co-founder Joe Lonsdale moved to Austin in 2020, while Larry Ellison transitioned Oracle's headquarters to Nashville. Michael Dell, the founder of Dell Technologies, has long lived in Texas.
While some see this exodus as a loss for California, others believe it could be an opportunity for innovation and growth. After all, as Jensen Huang said, "Not this person. This person is trying to build the future of AI."
. Like, can't they just put their differences aside for once? It's not like the money isn't going to add up... the proposed tax could raise billions of dollars, but I guess it's all about who's willing to pay up 
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. Larry Page is practically quivering in his boots over the tax, while Jensen Huang seems like he's just shrugging it off... what even is that? 
. I don't think so, folks. Newsom might not be keen on the tax, but I'm all for it if it means more money for education, food assistance, and healthcare programs in California 
.
. Newsom basically called them out on their selfish behavior with his tweet about FDR... well played 
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. Like, they're already making bank, what more do they need? It's not like it's going to break the bank for them or anything 
. The state is already struggling to fund its programs, so it'd be a huge blow if they all just up and left 
. But at the same time, I get why some of them are upset about the tax 
. Maybe there's a middle ground or something? Like, they could contribute a certain amount of money to the state without having to move 
that's not right. they need to contribute more than just a 5% tax, they need to show some real commitment to giving back. 
and what about all the good things the tax money will go towards, like healthcare and education? 
shouldn't that count for something? 
it's just not fair that the rich get richer while others struggle to make ends meet.
. think about it, they've made billions off their tech companies and now they're just gonna leave california because of a little tax? that's not cool 
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. plus, it's not like california can't compete globally, but sometimes you gotta prioritize the people who are struggling most 
. they're just gonna go to florida or texas or wherever and hide behind a bunch of LLCs? no thanks 
. let's get those billions flowing back into california for good 
. It's like, we need people who are passionate about making a difference (and also making money) to drive progress in this state 
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. But one thing's for sure: it's time for us regular people to start having a bigger say in how our taxes are spent 
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... Ro Khanna's right that a billionaire tax could be good for innovation. And hey, maybe this is a chance for California to show the world what it's made of 
. And if we consider the entire US population, only 0.01% are millionaires with over $1 million in assets 
! Meanwhile, Florida and Texas are like "Hey, come on down!" 
.
lets hope the proposed tax passes and cali gets the funding it deserves 
think the tax thing is pretty straightforward - if billionaires make their money in Cali, they should chip in a bit more than regular folk do 
. It's a catch-22 - they're making their money in one state, but don't wanna pay for its services.
Newsom might be right that states can't isolate themselves from economic trends, but it doesn't mean we should give up on trying to make the state more equitable. 
. He literally left California because of taxes, and now he's taking his companies with him 
. Meanwhile, Jensen Huang is over here like "oh, I'm fine" 
. On one hand, it's super rich people being asked to chip in for public services they've benefited from their wealth 
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!