Tech Founder Says California’s Billionaire Tax Would Hurt Startups

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Derik Kauffman, the organizer behind the planned “March for Billionaires,” says his motivation is opposition to California’s proposed Billionaire Tax Act. The bill would impose a one-time 5% tax on residents with net worth above $1 billion.

Kauffman argues the policy would disproportionately hurt startup founders whose wealth exists mostly on paper. He says founders could be forced to sell shares prematurely, lose company control, and face capital gains taxes—all while navigating the challenge of valuing private companies.

“This tax is fatally flawed,” Kauffman said, warning it could damage Silicon Valley’s startup ecosystem. He also pointed to Sweden’s elimination of its wealth tax two decades ago, citing concerns over capital flight and entrepreneurship as a cautionary example.

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