Peter Thiel Donates to Fight California’s Wealth Tax
Peter Thiel isn’t saying much after making a significant $3 million donation to a lobbying group focused on blocking a contentious wealth tax in California.
The co-founder of Palantir reportedly contributed this sum to the California Business Roundtable on December 29, as revealed by The New York Times through recent financial disclosures.
The proposed legislation, known as the Billionaire Tax Act of 2026, suggests a one-time 5% tax on individuals in California with wealth exceeding $1 billion. This initiative has already led some high-profile tech entrepreneurs to reconsider their residency in the state.
According to The Times, while Thiel’s hefty donation isn’t solely directed at thwarting ballot initiatives, it will support the lobbying group’s broader efforts against policies viewed as harmful to business interests.
Rob Lapsley, the chairman of the California Business Roundtable, mentioned that they are actively involved with ballot measures that impact businesses and, consequently, everyday Californians. He stated that such a wealth tax could jeopardize the economy, diminish the state budget, deter investments, and raise living costs for working families.
Recently, billionaire hedge fund manager Bill Ackman voiced his concerns, suggesting that a wealth tax might have a “devastating impact on California.” He speculated that successful entrepreneurs would likely leave the state altogether.
Reportedly, at least six billionaires have already departed California. A tax advisor, David L’Esperance, indicated that four billionaires sought his help in establishing residency outside the state before the proposal’s January 1 deadline.
Thiel, on record as a critic of wealth taxes, has shifted his investment firm, Thiel Capital, to Miami. Attempts to reach him for comment went unanswered.
Similarly, Google co-founder Larry Page has also relocated to Florida, purchasing luxury properties for substantial amounts in December.
Proponents of the wealth tax contend that it would only impact around 200 individuals, with the funds intended to mitigate cuts in federal funding for education and healthcare in the state.
However, mobilizing the nearly 900,000 signatures necessary for the November ballot might be challenging, based on a poll obtained by The Post.
Support for the tax measure has decreased from 55% to 41%, while opposition has grown to 53%, according to a survey by researcher David Binder. Governor Gavin Newsom has expressed his opposition to the proposal.
