One of the world's richest men has shrugged off concerns about a proposed one-off tax on California's billionaires, dismissing fears it could drive the ultra-wealthy from the state.
"It Never Crossed My Mind"
Jensen Huang, the founder and chief executive of chipmaking behemoth Nvidia, stated he had not considered the potential financial impact of the levy "even once". The proposal, put forward by the Service Employees International Union-United Healthcare Workers West, seeks to impose a single tax of five percent on the net worth of California residents valued at over $1 billion.
"I'm perfectly fine with it," Huang told Bloomberg Radio. "It never crossed my mind once." He emphasised his commitment to Silicon Valley, adding: "We chose to live in the Silicon Valley and whatever taxes I guess they would like to apply, so be it."
The Tax Proposal and Potential Fallout
The proposed ballot measure would target assets including stocks, bonds, artwork, and intellectual property, rather than income. Affected individuals would have five years to pay. For it to become law, the initiative must first gather enough signatures to appear on the November ballot and then win voter approval. If successful, the tax would apply retroactively to billionaires living in California as of 1 January 2026.
According to Forbes, Huang is the eighth-wealthiest person globally, with a net worth of $162.6 billion. He resides primarily in California, owning a $44 million home in San Francisco. His potential tax bill would be substantial.
However, the uncertainty surrounding the measure has reportedly prompted other tech billionaires to consider leaving the state. Venture capitalist Peter Thiel, worth an estimated $27.5 billion, could owe over $1.2 billion. His firm, Thiel Capital, recently opened an office in Miami, Florida. Google co-founder Larry Page, valued at roughly $258 billion, could face a one-time charge of at least $12 billion and has also contemplated a move, The New York Times reported.
Political Divisions and Industry Backlash
California Governor Gavin Newsom has historically opposed wealth taxes and criticised this specific proposal. "You can't isolate yourself from the 49 others," he said in December, highlighting the competitive landscape between states. "People have this simple luxury, particularly people of that status. They already have two or three homes outside the state."
In contrast, Democratic Congressman Ro Khanna voiced support, sarcastically noting on X that he would "miss" any billionaires who chose to depart.
The pushback from within the tech industry has been sharp. Palmer Luckey, founder of defence startup Anduril, slammed the proposal on X. Worth around $3.6 billion, he argued it would "force founders like me to sell huge chunks of our companies to pay for fraud, waste, and political favours."
Despite the controversy, Huang remains focused on Nvidia's operational needs, stating the company is headquartered in Santa Clara because "that's where the talent pool is." He concluded, "Wherever there's talent, we have offices," underscoring a priority that, for now, outweighs tax concerns.
