California Wealth Tax: Billionaire Palmer Luckey warns; Govt may snatch your home, salary
California's proposed billionaire wealth tax faces fierce opposition from tech leaders like Palmer Luckey, who warns of forced asset sales and financial ruin for entrepreneurs. Critics decry the measure as government overreach, potentially driving away innovation and talent, while proponents argue it addresses wealth inequality and funds essential services.
California's proposed billionaire wealth tax faces fierce opposition from tech leaders like Palmer Luckey, who warns of forced asset sales and financial ruin for entrepreneurs. Critics decry the measure as government overreach, potentially driving away innovation and talent, while proponents argue it addresses wealth inequality and funds essential services.
Palmer Luckey, cofounder of defense technology startup Anduril, has issued a stark warning about California's proposed billionaire wealth tax, cautioning that the measure could force entrepreneurs to sell major stakes in their companies and potentially face home seizures and wage garnishments if they cannot pay the hefty bill.
The Anduril executive warned founders could end up "screwed for life" if market downturns or wartime restrictions prevent them from liquidating assets to cover the tax liability.The warning comes as California's proposed wealth tax—which would impose a one-time 5% levy on residents worth over $1 billion—continues sparking intense backlash from Silicon Valley's tech elite. The measure, which requires signature gathering before reaching the November 2026 ballot, has already prompted billionaires Peter Thiel and Larry Page to explore leaving the state, according to recent reports.
California’s tax could trigger forced asset sales and double taxation nightmares
Luckey's concerns center on the practical challenges of paying billions in taxes when wealth is tied up in illiquid company stakes. He argued the tax would force founders to sell significant portions of their companies to generate cash for "fraud, waste, and political favors for the organizations pushing this ballot initiative."The Anduril cofounder painted a grim scenario where entrepreneurs unable to produce billions in cash could face aggressive state collection actions.
"One market correction, nationalization event, or prohibition of divestiture (not at all uncommon during wartime) and I am screwed for life," Luckey posted on social media platform X.Figma CEO Dylan Field echoed similar worries, noting founders and early employees caught by the tax couldn't use company stock to satisfy the obligation. Combined with potential capital gains taxes, entrepreneurs could face a "double tax event" that devastates their financial position.