Brian Armstrong, the CEO of Coinbase, has expressed that he might consider leaving California due to the state’s proposed wealth tax, which he describes as “deeply un-American.”
During an appearance on “The Katie Miller Podcast” on Tuesday, Armstrong cautioned that tech entrepreneurs are beginning to exit California in response to the proposed billionaire tax, the first of its kind in the nation. He mentioned that Coinbase, which has its largest office in San Francisco, could follow suit.
“To seize people’s assets feels fundamentally un-American to me. It could even be unconstitutional,” stated Armstrong, who has an estimated net worth of $8.8 billion, as reported by Forbes.
He mentioned that he has already contributed significantly to taxes based on his income and that he has no issue with that. However, the idea of an additional tax on wealth and assets gives him a sense of unease, likening it to conditions found in a “third-world country.” He expressed concern about the dangerous implications of this path.
Armstrong conveyed that this proposed tax clashes with his values and ultimately could be detrimental to both the state and the nation. As a result, he is exploring all options regarding relocation. He also indicated that he could support additional taxes if there wasn’t so much fraud and waste within the government.
Recently, he shared with CNBC that he’s thinking about moving his residence out of California before the end of the year.
As of June, Coinbase, an American cryptocurrency exchange and wallet platform, employed around 4,300 people worldwide. The company says it operates on a remote-first basis, though it recently signed a lease for 150,000 square feet of office space in San Francisco, just four years after paying $25 million to terminate a previous lease there.
Besides its San Francisco office, Coinbase has additional locations in New York, North Carolina, London, Singapore, Luxembourg, Dublin, and Bangalore, India. However, it is unclear how many employees are based in California, and the company did not respond to inquiries.
California’s proposed billionaire tax, known as Prop 40, would implement a one-time 5% tax on the net worth of approximately 200 billionaires in the state.
Wealthy tech figures have invested millions to oppose the tax. Sergey Brin, co-founder of Google, has reportedly dedicated over $100 million to combat the measure, which would cost him more than $13 billion personally.
Additionally, Meta founder Mark Zuckerberg is said to have purchased a $170 million mansion in Florida this year. Others like Peter Thiel and former Uber CEO Travis Kalanick have also moved out of California.
Curiously, even California Governor Gavin Newsom, a Democrat, has voiced objections to the tax, cautioning that it might negatively impact the state’s economy. Nevertheless, he has supported a “national billionaires’ tax,” arguing that ordinary workers shouldn’t face a higher tax burden than wealthy heirs.
Californians are set to vote on the billionaire tax this November. If it passes, 90% of the revenue generated would be allocated to healthcare services in the state, while the remaining 10% is earmarked for food assistance and education.
This ballot appears ahead of anticipated budget cuts from President Trump next year, with California’s Medicaid program expected to lose up to $30 billion in federal funding.
On Tuesday, Armstrong commended Trump for his positive stance toward the cryptocurrency industry while criticizing former President Joe Biden and Senator Elizabeth Warren for their approaches. Armstrong noted that Trump recognized a substantial voter base of crypto supporters in the 2024 elections.
“This isn’t merely about seizing a political opportunity,” Armstrong added. “He understands that for the U.S. to remain a key player in finance and technology, we need to embrace cryptocurrencies. If we don’t, it’s all going to move overseas.”
He pointed out that crypto can’t just be ignored at this point. Regulations need to be established so that it can be developed within the United States.
Armstrong accused the Biden administration of actively trying to stifle the crypto sector, adding that Warren has had considerable influence over financial regulators.
Just last week, Armstrong took part in a White House event with various other crypto CEOs, where Trump urged Congress to pass the Clarity Act, a bill aiming to regulate cryptocurrencies, by the end of the year.
After Trump’s election victory, Armstrong attended a Crypto Ball event at the Mellon Auditorium near the White House, coinciding with Trump’s inauguration weekend. A few months later, he sat close to Trump at a White House summit focused on the cryptocurrency industry.
