Reid Hoffman calls California's proposed billionaire tax 'horrendous' for innovation

""The proposed CA wealth tax is badly designed in so many ways that a simple social post cannot cover all of the massive flaws," Hoffman wrote. "One well-documented example is the horrendous idea to tax illiquid stock in the proposal. Poorly designed taxes incentivize avoidance, capital flight, and distortions that ultimately raise less revenue." He said that, after the conversation, he believes Khanna sees Silicon Valley as "a massively important creation of the future," adding that the congressman wants to "preserve and evolve capitalism" through the proposed tax."

""It is true that we need to preserve and grow the incredible creation and generativity of Silicon Valley," Hoffman wrote. "It is also true that we must figure out how to help people who have not benefited from the wealth, jobs, and company creation engine of Silicon Valley thus far." In a separate post, Khanna wrote that he appreciated "the excellent dialogue" with Hoffman. "You summarized my goal and aspiration correctly!" Khanna said."

Reid Hoffman opposes California's proposed 5% billionaire wealth tax, calling it badly designed and harmful to innovation. He criticized plans to tax illiquid stock and warned that poorly designed taxes incentivize avoidance, capital flight, and distortions that reduce revenue. He emphasized preserving and growing Silicon Valley's creation and generativity while also addressing those who have not benefited from its wealth, jobs, and company creation engine. Representative Ro Khanna engaged with Hoffman, expressed appreciation for the dialogue, and affirmed shared goals around preserving and evolving capitalism. Silicon Valley leaders remain split on the proposal.

Read at Business Insider