"What we know about the innovation economy is that taxing unrealized gains is the surest way to drive venture capitalists and with them early stage founders out of the state, Liccardo said in an interview. He argued the way the measure is written would unfairly tax startup founders and venture capitalists based on private market valuations, which can fluctuate widely."
"He argued the way the measure is written would unfairly tax startup founders and venture capitalists based on private market valuations, which can fluctuate widely. He also questions the use of a one-time revenue source to fund critical state programs such as health care and education, calling it a recipe for disaster. I'm perfectly fine with billionaires paying much more but let's do it in a way that doesn't kill California's golden goose or transform California's golden goose into Texas' golden goose, Liccardo said."
A proposed one-time 5% tax on California billionaires would apply retroactively to January 2026 if passed and aims to fund health care. Top Democrats, including a US representative for Silicon Valley and Katie Porter, oppose the measure. Critics argue taxing unrealized gains and private market valuations would prompt venture capitalists and early-stage founders to leave, noting some billionaires already departed. Opponents say the measure would unfairly tax startup founders, rely on volatile private valuations, and inappropriately use a one-time revenue source to fund ongoing programs such as health care, education, and food assistance. Governor Gavin Newsom has warned against the proposal.
Read at www.mercurynews.com
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