AI Entrepreneur Organizes ‘March for Billionaires’ to Oppose California’s Wealth Tax
In a bold move against California’s proposed ‘Billionaire’s Tax,’ Derik Kaufmann, founder of AI startup RunRL, has announced plans for a ‘March for Billionaires’ in San Francisco. The event, scheduled for this Saturday, aims to protest the legislation that would impose a one-time 5% tax on individuals with assets exceeding $1 billion.
The ‘Billionaire’s Tax’ was introduced last year with the backing of the Service Employees International Union (SEIU). Proponents argue that the tax could generate significant revenue for public services and help offset federal funding cuts. However, the proposal has faced strong opposition from the tech industry, with many leaders expressing concerns about its potential impact on the state’s economy.
Kaufmann, who is no longer involved with RunRL, believes the tax could be detrimental to Silicon Valley’s startup ecosystem. He argues that taxing unrealized wealth would force founders to liquidate shares under unfavorable conditions, leading to capital gains taxes and loss of control over their companies. Additionally, he points out the challenges in valuing private companies and notes that Sweden abolished a similar wealth tax two decades ago to prevent capital flight and encourage entrepreneurship.
Despite the controversy, the ‘March for Billionaires’ has garnered attention, with reactions ranging from skepticism to ridicule. Kaufmann acknowledges that he is unaware of any actual billionaires planning to attend the march, and anticipates a modest turnout.
It’s worth noting that the likelihood of the ‘Billionaire’s Tax’ being enacted is slim, as Governor Gavin Newsom has indicated he would veto the bill if it passes.
