Strong Industry Backlash Against California's Proposed '5% Wealth Tax' on Ultra-Rich, Concerns Over Exodus of Cryptocurrency Entrepreneurs

In California, home to numerous cryptocurrency startups and major technology companies, a proposal to tax the assets of the ultra-rich at 5% has triggered strong backlash from veterans of the cryptocurrency and tech industries. The proposed '2026 California Billionaire Tax Act' would tax residents with net assets exceeding $1 billion up to a maximum of 5%. Payments can be made in a lump sum or over five years, with the latter option subjecting taxpayers to an annual interest rate of 7.5%. This tax is intended as a one-time emergency measure but encompasses stocks, real estate, and cryptocurrencies among others.