Peter Thiel Donates Millions to Oppose California Billionaire Wealth Tax
Peter Thiel, the CEO of Palantir and a notable venture capitalist, has made headlines with his significant political donation. In a strategic move, Thiel contributed $3 million to the California Business Roundtable, an influential lobbying organization fighting against a proposed billionaire wealth tax.
Thiel’s Contribution Against California’s Billionaire Wealth Tax
Thiel’s donation, made on December 29, is the largest disclosed political gift he has given since the 2022 midterm elections, where he invested over $35 million in conservative candidates. This donation marks a key moment in the emerging campaign to oppose the 2026 Billionaire Tax Act.
Details of the Proposed Tax
- The 2026 Billionaire Tax Act aims to impose a one-time 5% tax on Californians with net worths exceeding $1 billion.
- This tax would affect a variety of assets including stocks, bonds, and collectibles, but would exclude real estate and certain retirement accounts.
- If approved, the tax would be applicable to residents as of January 1, 2026, calculated based on asset values at the end of that year.
Billionaires facing this tax could defer payments over five years but would incur a 7.5% annual charge on any unpaid balance, increasing their total tax obligation.
The Reaction from California’s Wealthy
The introduction of this tax has raised concerns among California’s wealthy elite. Many are reconsidering their residency or limiting their involvement in the state. Reports indicate that several billionaires have already moved out, and leaders warn that this tax could further diminish the state’s innovation-driven economy.
Thiel himself has maintained a presence in Silicon Valley while acquiring a property in Miami. His recent donation reflects a commitment to fight against the wealth tax rather than withdrawing from the political fray. Other tech leaders, including Chamath Palihapitiya and Bill Ackman, have also criticized the proposed tax, emphasizing its potential to inhibit entrepreneurship.
Support Across Political Lines
In a surprising alignment, some billionaires share common ground with California’s Democratic Governor, Gavin Newsom. Governor Newsom has publicly opposed the billionaire tax, referring to it as detrimental policy that could harm California’s image among affluent individuals.
The Path Forward
The campaign against the billionaire wealth tax is in its initial phases. Proponents must collect approximately 900,000 valid signatures to place the measure on the November ballot. Opponents, including Thiel and the Roundtable, foresee substantial spending to combat the initiative, predicting over $75 million could be spent in this significant economic battle.
