California tech founders unload on a proposed state wealth tax that already has some billionaires preparing an escape. ‘I am screwed for life’

Core Viewpoint - A proposed wealth tax targeting billionaires in California has generated significant backlash from tech founders, with concerns about its implications for business operations and personal finances [1][2]. Group 1: Wealth Tax Proposal - The wealth tax proposal requires California residents with a net worth exceeding $1 billion to pay a one-time tax of 5% of their assets, payable over five years [1]. - Supporters of the tax aim to use the revenue to mitigate federal funding cuts in healthcare, but the proposal must gather sufficient signatures to qualify for the November 2026 ballot [2]. Group 2: Reactions from Tech Founders - Prominent tech figures like Peter Thiel and Larry Page are considering leaving California if the tax is enacted, indicating a potential exodus of wealthy individuals from the state [1]. - Palmer Luckey, cofounder of Anduril, expressed concerns that the tax could force founders to sell significant portions of their companies to meet tax obligations, potentially leading to personal financial crises [3][4]. - Dylan Field, cofounder of Figma, highlighted that founders and early employees might face a "double tax event" due to capital gains taxes, complicating their financial situations further [5]. Group 3: Broader Implications for Startups - The wealth tax could negatively impact startup valuations, as founders may be pressured to lower their companies' worth during unsuccessful years, making it challenging to attract talent and investors [5]. - There is a concern that the tax could create a ripple effect in Silicon Valley, where startups may follow the lead of established companies and founders, even if they are not directly affected by the tax [6].