Billionaire tech investor Peter Thiel has made a significant seven-figure donation to a campaign fighting a proposed wealth tax targeting California's ultra-rich. The Palantir co-founder contributed $3 million to the political action committee of the California Business Roundtable, a powerful lobbying group, according to a public disclosure filing first reported by the New York Times.
The Proposed "Billionaire Tax Act"
The ballot proposal, known as the 2026 Billionaire Tax Act, is in its early stages of gathering the required 900,000 signatures to be put before voters in November. If enacted, the measure would impose a one-time, 5% tax on any individual in the state with a net worth exceeding $1 billion, granting a five-year period for payment.
Based on his current estimated net worth of $26 billion, Peter Thiel would personally owe the state of California roughly $1.3 billion under the proposed law. A representative for Thiel did not respond to requests for comment regarding the donation.
Tech Titans Divided: Fight or Flight?
Thiel's substantial contribution is an early indicator of how California's technology elite may mobilise their vast resources to defeat the tax proposal. It has become a major concern for the state's wealthiest residents, who view it as a direct threat to their fortunes.
The proposal has already sparked opposition from several prominent tech billionaires. Google co-founders Larry Page and Sergey Brin, each worth over $250 billion, have reportedly shifted assets to other states recently. The Wall Street Journal noted that Page spent approximately $173 million on two properties in Miami.
Other figures on the tech-right, such as Tesla CEO Elon Musk and Palantir's other co-founder Joe Lonsdale, have actively encouraged their wealthy peers to leave California. Thiel himself has taken steps to relocate parts of his business empire, with his private investment firm, Thiel Capital, opening a Miami office last year. His recent donation filing also lists Miami as his location.
Political Battle Lines Drawn
Advocates for the tax, including the Service Employees International Union, argue that the generated revenue is crucial. They contend it would prevent the collapse of California's healthcare system and provide essential funding for public education programmes. The union estimates the tax would affect only about 200 people in the entire state.
However, the measure has proven politically divisive even among Democrats. Governor Gavin Newsom has vowed to "fight" the proposal, claiming it would harm the state's economic competitiveness. In contrast, California representative Ro Khanna has publicly backed the act.
In a statement to the Guardian, the California Business Roundtable labelled the proposal a "dangerous wealth tax". Rob Lapsley, president of the Roundtable, argued it would "undermine our economy, decimate the state budget, drive investment out of the state, and ultimately make everyday life more expensive for working families."
Not all tech billionaires are opposed. In a notable dissent, Nvidia CEO Jensen Huang, with a net worth of around $159 billion, recently told Bloomberg Television he was "perfectly fine" with the proposal and claimed he hadn't "even thought about it once."
Peter Thiel has a long history of funding conservative causes, including a $1 million donation to Donald Trump's first presidential campaign, and has given millions to anti-tax groups and candidates over the years.
