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Billionaire Peter Thiel is contributing to the fight against the so-called billionaires tax ballot measure that California voters may have the opportunity to vote on this fall.
Thiel made a $3 million donation to the California Business Roundtable, a lobbying group that opposes policies it views as being anti-business. The donation was first reported by The New York Times, citing a disclosure.
The Times noted that while the donation isn’t specifically earmarked for efforts to oppose the wealth tax proposal, the group is expected to be among those leading the fight against the measure and the funds will help its broader goals.
The proposal, known as the 2026 Billionaire Tax Act, would amend the California state constitution to impose a one-time tax of up to 5% on taxpayers and trusts with covered assets valued over $1 billion.
NEWSOM SAYS CALIFORNIA WEALTH TAX ‘REALLY DAMAGING’ AS BILLIONAIRES MOVE MONEY, BUSINESSES OUT OF STATE
Those covered assets may include businesses, securities, art, collectibles and intellectual property, though real property, pensions and certain retirement accounts would be exempt.
It would apply retroactively to residents of California as of Jan. 1, and the tax would be due in 2027 and taxpayers could spread payments over five years.
If the proposal is enacted, 90% of the tax revenue would be allocated to healthcare while 10% would go to food assistance or education-related programs. The tax revenue would be exempt from California constitutional requirements for school funding, budget reserves and state spending limits.
CALIFORNIA WEALTH TAX PROPOSAL HEMORRHAGES $1T AS BILLIONAIRES FLEE
Supporters of the California billionaire tax measure are in the process of collecting the almost 900,000 signatures necessary to get the measure on the ballot. The measure is backed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), along with some Democratic lawmakers.
The billionaire tax proposal has drawn bipartisan criticism, with California’s top Democrat, Gov. Gavin Newsom, expressing opposition to the proposal.
Newsom told Politico in an interview on Monday that he was concerned about reports of wealthy California residents moving money and businesses out of the state and warned it would damage the economy and drive away investment.
“The evidence is in. The impacts are very real – not just substantive economic impacts in terms of the revenue, but start-ups, the indirect impacts of… people questioning long-term commitments, medium-term commitments,” he continued. “That’s not what we need right now, at a time of so much uncertainty. Quite the contrary.”
BILLIONAIRES MAKE STRATEGIC MOVES OUT OF CALIFORNIA AHEAD OF PROPOSED WEALTH TAX
Newsom added that while he has publicly supported a progressive tax structure, he believes the proposed billionaire tax “makes no sense” and is “really damaging to the state.”
The provision making the wealth tax retroactive to apply to people who were California residents as of Jan. 1, 2026, has reportedly led to several billionaires and prominent business figures relocating out of the state.
Public filings reviewed by Fox News Digital from the California Secretary of State’s Office show several business entities linked to Google co-founder Larry Page were relocated out of the state in December. He also reportedly purchased two Miami properties valued at $73.4 million.
Oracle Chairman Larry Ellison sold his San Francisco mansion for about $45 million, while The New York Times reported that Google co-founder Sergey Brin and Thiel have shifted some business operations out of California.
FOX Business’ Kristen Altus and Alex Nitzberg contributed to this report.
