Peter Thiel Contributes $3M to Fight Against California Billionaire Tax Initiative
‘The Big Money Show’ panel reacts to billionaires fleeing California as Gov. Gavin Newsom’s proposed wealth tax sparks backlash and red state migration.
Billionaire Peter Thiel is actively opposing the proposed billionaires tax ballot measure that may appear on California’s ballot this fall. Thiel has made a significant contribution of $3 million to the California Business Roundtable, a lobbying organization that stands against policies perceived as detrimental to business interests. This donation was first reported by The New York Times, which cited a recent disclosure.
While the donation is not specifically allocated for opposing the wealth tax, the California Business Roundtable is expected to play a leading role in the campaign against the measure, using the funds to support its broader objectives.
The proposed legislation, known as the 2026 Billionaire Tax Act, aims to amend the California state constitution to impose a one-time tax of up to 5% on taxpayers and trusts with assets exceeding $1 billion.
Peter Thiel, co-founder of PayPal, Palantir Technologies and Founders Fund, donated to a lobbying group opposed to the California billionaire tax measure. (Marco Bello/Getty Images)
The assets subject to this tax may encompass businesses, securities, art, collectibles, and intellectual property, while certain exemptions apply to real estate, pensions, and specific retirement accounts. The tax would be retroactive to residents as of January 1, 2026, with payments due in 2027, allowing taxpayers to spread their payments over five years.
If enacted, 90% of the tax revenue would be allocated to healthcare, with the remaining 10% directed towards food assistance and education programs. Notably, this tax revenue would be exempt from California’s constitutional requirements regarding school funding, budget reserves, and state spending limits.
CALIFORNIA WEALTH TAX PROPOSAL HEMORRHAGES $1T AS BILLIONAIRES FLEE
California Gov. Gavin Newsom expressed opposition to the billionaire tax proposal, arguing it would hurt the economy. (Brandon Bell/Getty Images)
Supporters of the billionaire tax measure are currently gathering nearly 900,000 signatures to qualify it for the ballot. The initiative is backed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW) and several Democratic lawmakers.
This tax proposal has faced bipartisan criticism, with California’s top Democrat, Gov. Gavin Newsom, publicly opposing it. In a recent interview with Politico, Newsom expressed concerns about wealthy Californians relocating their money and businesses out of state, warning that this could harm the economy and deter investment.
He stated, “The evidence is in. The impacts are very real – not just substantive economic impacts in terms of the revenue, but start-ups, the indirect impacts of… people questioning long-term commitments, medium-term commitments. That’s not what we need right now, at a time of so much uncertainty. Quite the contrary.”
BILLIONAIRES MAKE STRATEGIC MOVES OUT OF CALIFORNIA AHEAD OF PROPOSED WEALTH TAX
Google co-founder Sergey Brin is reportedly among the billionaires moving businesses out of California. (Lionel Hahn/Getty Images / Getty Images)
Newsom reiterated his support for a progressive tax structure but criticized the proposed billionaire tax as “making no sense” and “really damaging to the state.” The retroactive nature of the tax, which applies to individuals who were California residents as of January 1, 2026, has reportedly prompted several billionaires and influential business figures to relocate.
Public filings from the California Secretary of State’s Office reveal that multiple business entities linked to Google co-founder Larry Page were moved out of state in December, coinciding with his purchase of two Miami properties valued at $73.4 million.
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Additionally, Oracle Chairman Larry Ellison sold his San Francisco mansion for approximately $45 million, while reports indicate that both Sergey Brin and Thiel have shifted some business operations out of California.
FOX Business’ Kristen Altus and Alex Nitzberg contributed to this report.
‘The Big Money Show’ panel reacts to billionaires fleeing California as Gov. Gavin Newsom’s proposed wealth tax sparks backlash and red state migration.
Billionaire Peter Thiel is actively opposing the proposed billionaires tax ballot measure that may appear on California’s ballot this fall. Thiel has made a significant contribution of $3 million to the California Business Roundtable, a lobbying organization that stands against policies perceived as detrimental to business interests. This donation was first reported by The New York Times, which cited a recent disclosure.
While the donation is not specifically allocated for opposing the wealth tax, the California Business Roundtable is expected to play a leading role in the campaign against the measure, using the funds to support its broader objectives.
The proposed legislation, known as the 2026 Billionaire Tax Act, aims to amend the California state constitution to impose a one-time tax of up to 5% on taxpayers and trusts with assets exceeding $1 billion.
Peter Thiel, co-founder of PayPal, Palantir Technologies and Founders Fund, donated to a lobbying group opposed to the California billionaire tax measure. (Marco Bello/Getty Images)
The assets subject to this tax may encompass businesses, securities, art, collectibles, and intellectual property, while certain exemptions apply to real estate, pensions, and specific retirement accounts. The tax would be retroactive to residents as of January 1, 2026, with payments due in 2027, allowing taxpayers to spread their payments over five years.
If enacted, 90% of the tax revenue would be allocated to healthcare, with the remaining 10% directed towards food assistance and education programs. Notably, this tax revenue would be exempt from California’s constitutional requirements regarding school funding, budget reserves, and state spending limits.
CALIFORNIA WEALTH TAX PROPOSAL HEMORRHAGES $1T AS BILLIONAIRES FLEE
California Gov. Gavin Newsom expressed opposition to the billionaire tax proposal, arguing it would hurt the economy. (Brandon Bell/Getty Images)
Supporters of the billionaire tax measure are currently gathering nearly 900,000 signatures to qualify it for the ballot. The initiative is backed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW) and several Democratic lawmakers.
This tax proposal has faced bipartisan criticism, with California’s top Democrat, Gov. Gavin Newsom, publicly opposing it. In a recent interview with Politico, Newsom expressed concerns about wealthy Californians relocating their money and businesses out of state, warning that this could harm the economy and deter investment.
He stated, “The evidence is in. The impacts are very real – not just substantive economic impacts in terms of the revenue, but start-ups, the indirect impacts of… people questioning long-term commitments, medium-term commitments. That’s not what we need right now, at a time of so much uncertainty. Quite the contrary.”
BILLIONAIRES MAKE STRATEGIC MOVES OUT OF CALIFORNIA AHEAD OF PROPOSED WEALTH TAX
Google co-founder Sergey Brin is reportedly among the billionaires moving businesses out of California. (Lionel Hahn/Getty Images / Getty Images)
Newsom reiterated his support for a progressive tax structure but criticized the proposed billionaire tax as “making no sense” and “really damaging to the state.” The retroactive nature of the tax, which applies to individuals who were California residents as of January 1, 2026, has reportedly prompted several billionaires and influential business figures to relocate.
Public filings from the California Secretary of State’s Office reveal that multiple business entities linked to Google co-founder Larry Page were moved out of state in December, coinciding with his purchase of two Miami properties valued at $73.4 million.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Additionally, Oracle Chairman Larry Ellison sold his San Francisco mansion for approximately $45 million, while reports indicate that both Sergey Brin and Thiel have shifted some business operations out of California.
FOX Business’ Kristen Altus and Alex Nitzberg contributed to this report.
