Ripple quietly spends millions to oppose California's billionaire tax

Core Viewpoint - California's proposed 2026 Billionaire Tax Act has sparked significant backlash from the billionaire class, particularly those in the crypto industry, who argue it could drive them out of the state [2][6][7]. Group 1: Tax Proposal Details - The 2026 Billionaire Tax Act would impose a one-time state tax of 5% on the net worth of billionaires residing in California as of January 1, 2026 [2]. - If approved by voters, the tax would be due in 2027, with 90% of the revenue allocated to public healthcare services and the remainder to education and food assistance programs [3]. Group 2: Opposition from Crypto Leaders - Chris Larsen, co-founder of Ripple Labs, is the largest donor to the Golden State Promise PAC opposing the tax, contributing $5 million, with Ripple Labs matching this amount [5]. - Other crypto leaders, including Kraken co-founder Jesse Powell, have criticized the tax as a "5% theft of unrealized gains," expressing concerns about the potential exodus of billionaires from California [6][7]. Group 3: Impact on Billionaires - Reports indicate that some billionaires have already left California in response to the proposed tax, including Google co-founders Larry Page and Sergey Brin, venture capitalist Peter Thiel, and former Uber CEO Travis Kalanick [8].