Billionaire Peter Thiel isn’t enjoying over a controversial billionaire tax plan that’s seen a few of California’s richest folks packing their luggage.
Thiel Capital, the PayPal co-founder’s funding agency, is opening a brand new workplace in Miami as experiences floor that he’s particularly peeved concerning the 5% wealth tax that might hit him with a $1.2 billion invoice, in response to a Wednesday press launch.
The agency signed a brand new lease this month within the Wynwood space of Miami, per the discharge.
“Mr. Thiel has established a major presence in Miami over the past a number of years, sustaining a private residence within the metropolis since 2020,” the agency introduced. “Founders Fund, the enterprise capital agency cofounded by Mr. Thiel and of which he serves as a accomplice, has maintained an workplace in Miami since February 2021.”
Thiel, who owns a house within the Hollywood Hills, is among the many ultra-wealthy Californians taking steps to vary their residences within the occasion the billionaire tax is authorized by voters.
Establishing a transparent presence in one other state is essential to profitable a residency problem by the California Franchise Tax Board, billionaire tax advisor David Lesperance beforehand instructed The Submit.
The initiative, which should collect about 870,000 signatures to make the November 2026 poll, would impose a 5% one-time tax on the belongings of roughly 200 billionaires so as to replenish well being care funds that have been misplaced due to federal funding cuts, in response to the union behind the plan.
Different billionaires who’ve blasted the tax embody former Fb exec Chamath Palihapitiya and hedge funder Invoice Ackman, who shouldn’t be a California resident however instructed The Submit that “actually nobody would keep” if the tax passes.
Corporations related to Google co-founder Larry Web page, who might be dealing with a $12 billion tax invoice, filed paperwork to include in Florida to doubtlessly keep away from the tax, in response to the New York Occasions.
Alex Spiro, Elon Musk’s lawyer, warned California Gov. Gavin Newsom — who opposes the proposed tax — to step in and assist kill it or face an exodus of much-needed wealth and capital from the Golden State.
“Our shoppers have made clear they’ll completely relocate if subjected to this tax,” Spiro wrote on behalf of unnamed billionaire shoppers.
Advocates of the billionaire tax, together with the union listed as chief sponsor, SEIU-United Healthcare West, argue that the tax is minor and fears of capital flight are overstated.
Nonetheless, even the California Secretary of State acknowledged in its written poll measure abstract that any revenues from the billionaire tax might be worn out by revenue tax losses within the “a whole lot of thousands and thousands of {dollars} or extra per 12 months” if the ultra-rich depart for greener pastures.
Proponents have estimated the tax would elevate roughly $100 billion over 5 years.
