Venture capitalist and Palantir (NASDAQ:PLTR) chairman Peter Thiel has reportedly donated $3 million to a committee opposing the proposed California wealth tax targeting billionaires.
Thiel’s contribution to the California Business Roundtable is expected to be the first of many from Silicon Valley leaders, and was made on Dec. 29, the New York Times reported, citing a new financial disclosure.
Put forward by a state health care union, the proposed initiative aims to tax California residents worth over $1 billion by 5% of their assets to offset federal budget cuts impacting the state’s healthcare system.
Governor Gavin Newsom opposes the measure, arguing it could drive billionaires out of the state. The initiative needs nearly 900,000 signatures to appear on the November ballot.
In an interview with the New York Times on Monday, Newsom vowed to stop the proposed tax, saying that its mere introduction had already hurt the state by driving some billionaires to relocate.
Tax Threat Triggers Billionaires’ Exodus
Billionaires, including Thiel, and Google co-founders Larry Page and Sergey Brin, are reportedly considering cutting or reducing their ties to California.
At least six billionaires have already left the Golden State, according to Bloomberg.
Venture capitalist Chamath Palihapitiya and hedge fund billionaire Bill Ackman have also raised alarms over the tax, saying it could kill entrepreneurship and stifle innovation in the state.
Thiel’s latest donation is his largest disclosed political check in years. He previously spent over $35 million on the 2022 midterm elections to back Make America Great Again candidates.
Although the donation is not explicitly intended to oppose the ballot measure, The New York Times reported that it will support the lobbying group’s broader efforts to push back against policies it views as anti-business.
Thiel did not immediately respond to Benzinga‘s request for comment.
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