Billionaire Peter Thiel Offers $3M to Lobbying Group to Fight Against the California Wealth Tax

Billionaire venture capitalist and co-founder of Palantir Technologies, Peter Thiel, has donated $3 million (£2.2 million) to the California Business Roundtable's political action committee, a lobbying organisation actively opposing a proposed ballot measure to tax billionaires in the state.

'The California Business Roundtable will continue to be actively engaged in ballot measures that affect the business community and the cost of living for all Californians,' said Rob Lapsley, president of the Roundtable. 'That includes opposing proposals like a dangerous wealth tax that would undermine our economy, decimate the state budget, drive investment out of the state, and ultimately make everyday life more expensive for working families.'

Thiel's donation comes at a time when several high-profile billionaires are relocating to other states or reducing their ties to California, amid warnings that the proposed tax could accelerate an exodus of founders and investors. This, critics argue, could dampen the innovation momentum that has long been the backbone of California's thriving tech sector.

The proposal is being opposed by tech billionaires, including Google co-founders Larry Page and Sergey Brin. Both of them have reportedly shifted assets to other states in recent months, with Page recently purchasing two Miami homes for $173 million (£128.7 million).

Thiel has also been relocating some of his assets away from California. The Thiel Capital private investment firm said in 2025 that it had opened a Miami office as well. Thiel has a track record of bankrolling conservative causes and has given millions to anti-tax groups in recent years.

How the Tax Benefits Ordinary California Residents

The ballot proposal, known as the 2026 Billionaire Tax Act, is currently in the early stages of collecting the 900,000 signatures needed to qualify for a vote in November. If passed, it would impose a one-time, 5% tax on anyone in California with assets exceeding $1 billion (£744.2 million). Thiel, with a net worth of approximately $26 billion (£19.3 billion), would owe the state around $1.3 billion (£967.5 million).

The tax would target assets such as privately held businesses, stocks, bonds, art collections, collectibles, and intellectual property, rather than income. Notably, real estate holdings and certain pensions or retirement accounts would be exempt from the tax.

Introduced in November 2025 by a healthcare workers' union and supported by some lawmakers—including Senator Bernie Sanders—the aim is to redirect revenue towards California's strained healthcare system, which faces significant shortfalls due to federal cuts. The revenue would also fund public schools and food assistance programmes. Supporters estimate that the law could generate as much as $100 billion (£74.4 billion) by taxing the state's 200 billionaires.

Nvidia CEO Is 'Perfectly Fine' With the Proposed Tax

However, not all high-net-worth individuals in California are opposed. Nvidia CEO Jensen Huang recently expressed a surprisingly different viewpoint. When asked about the proposal, Huang said he was 'perfectly fine' with the tax, despite the fact that, with a net worth of $155 billion (£115.3 billion), he could face a bill exceeding $7.7 billion (£5.7 billion).

Huang told Bloomberg TV that he had 'not even thought about it once' and remarked, 'We chose to live in Silicon Valley, and whatever taxes they would like to apply, so be it. I'm perfectly fine with it.' His comments highlight a notable divergence in attitude among some of California's wealthiest, with many choosing to oppose the measure.