Crypto Industry Backlash to California Billionaire Tax
Crypto executives strongly oppose California's proposed 5% wealth tax on billionaires, fearing capital flight and reduced philanthropy.Summary
A proposed 5% wealth tax on net assets over $1 billion in California, intended to fund healthcare and state assistance programs, has sparked significant backlash from the crypto industry. Executives like Kraken co-founder Jesse Powell and Bitwise CEO Hunter Horsley argue the measure, which partially taxes unrealized gains, will cause billionaires to leave the state, taking their spending, philanthropy, and jobs with them. Proponents, such as Representative Ro Khanna, maintain the tax will fund vital services like childcare and housing, benefiting innovation. Critics, including Castle Island Ventures partner Nic Carter, suggest capital is highly mobile and such taxes signal future demands, potentially leading to capital flight. Furthermore, Dune CEO Fredrik Haga cited Norway's experience, where a similar tax resulted in a mass exodus of wealthy taxpayers and raised less revenue than anticipated. Concerns were also raised about the state's ability to manage funds effectively, referencing a California State Auditor report highlighting issues with taxpayer fund expenditures.
(Source：Cointelegraph)