In California, a proposed wealth tax aimed at billionaires has already stirred up a wave of fierce opposition from tech industry pioneers, even before it makes it onto the state's ballot. Venture capitalist Peter Thiel and Google co-founder Larry Page are reportedly weighing the option of leaving California. The proposed measure mandates that California residents with assets surpassing $1 billion pay a one-time 5% wealth tax, which they can spread out over a five-year period.

Proponents of the tax hope to counterbalance the cuts in federal healthcare funding through this initiative. Democratic Representative Ro Khanna, who represents portions of Silicon Valley, has voiced his support for the proposal. However, his stance has drawn a significant amount of negative feedback.

Palmer Luckey, co-founder of the defense tech startup Anduril, and Dylan Field, CEO of the design collaboration platform Figma, have raised concerns. They caution that the tax could compel founders to divest equity, expose them to double taxation, and pose operational challenges for businesses.

In response, Khanna has expressed his opposition to capital gains taxes on unrealized gains, advocated for business-friendly solutions, and underscored that the tax could spur the development of artificial intelligence. Nevertheless, Dave Friedberg, co-founder of Ohalo Genetics, has branded it as "organized government plundering of citizens' private property." Meanwhile, Gary Tan, CEO of the tech startup accelerator Y Combinator, has contended that such a move could trigger capital flight and stifle innovation.