Chamath Palihapitiya, CEO of venture capital firm Social Capital and AI startup 8090, said he will remain in California and “pay the taxes” despite a proposed 5% one-time wealth tax on net worths over $1 billion, set to go before voters in November, even as many peers relocate over rising state levies.
In his appearance at CNBC’s “Squawk Pod” on Tuesday, Palihapitiya said, “It’s given me everything. So, I will not leave and I will keep building companies there and hiring people there.”
Palihapitiya Calls Tax ‘Dumb,’ Warns of Founder Exodus
“The reality in California is the overwhelming majority of the taxes are paid by people making less than $150,000,” Palihapitiya said, arguing the measure fails to address the state’s core fiscal problems rather than targeting the ultra-wealthy.
He also warned the policy could unfairly hit early-stage founders whose paper valuations rise sharply without giving them cash to cover the resulting tax bill. “He may be only making $100,000 a year. This is why this law is so dumb,” Palihapitiya said, predicting the measure would take 15 years to meander through the courts at the state and federal level.
