Cryptocurrency Giant Slams Proposed 5% Wealth Tax in California

Dec. 29 — California has unveiled a proposal for a 5% wealth tax on billionaires, with crypto industry executives fiercely opposing the plan over concerns it would spark entrepreneur departures, capital flight, and ultimately prove a waste of resources, per Cointelegraph. The measure, dubbed the “2026 Billionaire Tax Act,” seeks to qualify a ballot initiative imposing the 5% levy on individuals or entities with net worth over $10 billion. Proceeds would fund California’s healthcare system and state assistance programs. SEIU United Healthcare Workers West notes a portion of the proposed tax targets unrealized gains, meaning some billionaires could need to sell stocks or portions of their businesses to cover the tax bill. The tax may be paid in a lump sum or via five-year installment plans with interest. Crypto leaders including Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell argue the proposal would only drive billionaires out of the state, leading to negative consequences.