The debate surrounding California’s proposed ‘Billionaire’s Tax’ is taking a strange turn. This week, as criticism from tech elites over the controversial bill continued, plans emerged for a “March for Billionaires” in San Francisco. A website advertising the event appeared online with a pointed tagline: “Vilifying billionaires is popular. Losing them is expensive.”
The initial reaction was widespread disbelief, with many assuming the site was an elaborate hoax. However, the apparent organizer has since confirmed the march is not a joke and is scheduled for this coming Saturday.
The San Francisco Examiner reported that the event’s organizer is Derik Kaufmann, founder of AI startup RunRL, a past participant in Y Combinator’s accelerator program. Kaufmann stated the event is not funded or organized by any outside group or company, but by him alone. He also clarified he is no longer involved with RunRL.
In conversations, Kaufmann confirmed the rally is a direct response to California’s proposed wealth tax, which he believes would be “quite damaging to the tech economy.” The policy, known as the Billionaire Tax Act, was introduced last year. It would require Californians with a net worth over $1 billion to pay a one-time 5% tax on their total wealth.
The legislation, backed by the healthcare union SEIU, is seen by some experts as a way to fund important public services and offset federal funding cuts. Despite this, it has prompted loud protests from prominent tech figures, many of whom have threatened to leave or have already left California. It has also sparked intense lobbying efforts in the state legislature to defeat the bill.
Kaufmann explained his opposition stems from concern for Silicon Valley’s startup economy. He argues the tax is “fatally flawed” because it targets founders whose wealth is largely on paper in company shares. He claims they would be forced to liquidate shares under potentially unfavorable terms, incurring capital gains taxes and losing control, while also facing the difficulty of valuing private companies. He further stated that Sweden eliminated a similar wealth tax two decades ago to prevent capital flight and promote entrepreneurship, and now has 50% more billionaires per capita than the US.
Online discussion about the planned march continues to mix incredulity with ridicule, with many finding the image of billionaires marching in the streets hard to envision. Kaufmann himself acknowledges he is not aware of any actual billionaires planning to attend the event in their honor. He anticipates “a few dozen attendees,” but is uncertain of the final turnout.
The intense outrage over the proposed tax carries an element of irony, as it has been widely known for some time that the legislation has almost no chance of becoming law. California Governor Gavin Newsom has already stated he would veto the bill if it reached his desk.