Peter Thiel, PayPal co-founder and Palantir chairman, has emerged as the first major donor in what is expected to be a high-dollar campaign to block a proposed California wealth tax, The New York Times reports.
Thiel gave $3 million to a political committee aligned with the California Business Roundtable late last year, marking the first publicly disclosed seven-figure contribution to oppose the proposed 5% tax aimed squarely at billionaires.
The donation signals that Silicon Valley’s ultra-wealthy are shifting from private planning to public resistance as supporters of the tax work to qualify it for the November ballot.
In fact, insiders expect many more large checks to follow in 2026 as wealthy Californians mobilize to protect their fortunes.
The ballot proposal, backed by a powerful healthcare union, would impose a tax equivalent to roughly 5% of assets on residents worth more than $1 billion.
Supporters argue the revenue is needed to shore up California’s healthcare system amid looming federal budget cuts.
Opponents counter that it would be punitive, unworkable — and likely to accelerate the exodus of high-net-worth individuals from the state.
Even Gov. Gavin Newsom, a Democrat, has come out against the measure, warning it would drive capital and taxpayers elsewhere.
The initiative still faces a major hurdle: collecting nearly 900,000 signatures to qualify for the ballot.
But that hasn’t stopped preparations on both sides. Opponents privately estimate that defeating the measure could require upwards of $75 million.
Behind the scenes, California’s wealthiest residents are debating how best to wage the fight.
Some donors are commissioning polls to test public sentiment. Others favor a more familiar California tactic: flooding the ballot with competing tax measures to fracture voter support.
Thiel’s contribution is notable not just for its size, but for what it represents.
Though Thiel maintains business interests and property in Los Angeles, his investment firm recently expanded to Miami, and public disclosures now list Florida as his base.
The venture capitalist and political activist is among a growing cohort of tech billionaires reassessing their ties to California as tax policy grows more aggressive.
The donation is Thiel’s largest disclosed political check since the 2022 midterms, when he poured tens of millions into conservative-aligned races.
His political engagement has ebbed and flowed since then, but the wealth tax proposal appears to have refocused his attention.
Other prominent names are said to be involved in strategy discussions as well, including Google co-founder Sergey Brin, who has taken steps to reduce his California exposure ahead of the tax’s proposed effective date.
Brin's former partner, Larry Page, Google co-founder and the world’s second-richest person, has reportedly left California as momentum builds behind the tax.
For California’s affluent residents, the message is clear: the fight over the state’s fiscal future is no longer theoretical. It’s personal — and increasingly expensive.
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