In this episode of Something Ventured I dive into the explosive controversy shaking Silicon Valley: California's proposed one-time 5% "Billionaires Tax" ballot initiative. Filed by the powerful healthcare workers union SEIU-UHW, the measure would impose a retroactive 5% levy on the net worth of individuals worth $1 billion or more (as of January 1, 2026), aiming to raise around $100 billion to shore up the state's healthcare system and support education amid looming federal funding cuts.
I break down why this has sparked panic among the ultra-wealthy — including Google co-founders Larry Page and Sergey Brin, who have already moved business entities out of state (along with others like David Sacks) — potentially costing California trillions in departing wealth and innovation.
I explain key concerns: The tax applies to unrealized gains and even control/voting shares in companies (which could hit founders like Page and Brin far harder than a simple 5% of their personal stock holdings).
Fears that a "one-time" tax on billionaires could expand into an ongoing wealth tax affecting the middle class (just like the federal income tax did).
How deceptive ballot naming, union funding power, and shifting political winds (including support from Rep. Ro Khanna) make passage seem scarily plausible — despite opposition from Gov. Gavin Newsom.
I also also consider the value billionaires create (think iPhones, Amazon deliveries, and massive charitable giving), highlight how the top 1% already pay a huge share of California's taxes, and contemplate stifled innovation, capital flight, and long-term damage to the state's economy.
From ghost-town fears for Silicon Valley to broader debates on wealth, fairness, and government overreach — this is the inside story straight from the heart of tech. Stay tuned for more unfiltered takes on what's really happening in Silicon Valley and beyond.
