"California will lose its most important taxpayers and net off much worse. Even people who don't expect this initiative to pass are still planning to leave because there will be another one. You're permanently reducing the tax base on an ongoing basis to get a one shot. That's what a junkie does, a one-time shot."
"I don't care about the next 20 years of capital that will be taxes. Annual income from California, from that trillion that is left, is gone if this tax passes. The state is playing a dangerous game by sacrificing long-term economic health for immediate revenue."
Vinod Khosla, Sun Microsystems co-founder and venture capitalist, is staying in California despite a proposed wealth tax levying 5% on assets exceeding $1 billion. While many Silicon Valley billionaires are leaving the state, Khosla publicly criticizes the policy as economically damaging. He argues the tax represents short-term thinking comparable to addiction, sacrificing long-term capital tax revenue for immediate funds. Khosla warns that wealthy residents are already departing and that additional similar initiatives will continue driving people away. He contends California is permanently reducing its tax base and losing critical taxpayers, though he remains committed to the state's future.
Read at Fortune
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