Cryptocurrency Giant Slams Proposed 5% Wealth Tax in California

BlockBeats News, December 29th, according to cointelegraph, California has proposed a 5% wealth tax on billionaires, a proposal strongly opposed by cryptocurrency executives. They believe this would trigger entrepreneur outflows, capital flight, and ultimately be wasted.

The proposal, known as the "2026 Billionaire Tax Act," aims to add a ballot initiative to impose a 5% tax on individuals or entities with a net worth exceeding $10 billion to fund the healthcare system and state aid projects. According to SEIU United Healthcare Workers West, since part of this proposed wealth tax targets unrealized gains, some billionaires may need to sell stocks or part of their businesses to raise funds to pay the tax. The tax can be paid in a lump sum or in five-year interest payments.

Cryptocurrency industry veterans, including Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell, believe that this measure will only cause billionaires to leave the state, leading to negative repercussions.