San Francisco is preparing for a curious event this Saturday: a “March for Billionaires.” The demonstration, planned for , is the brainchild of Derik Kaufmann, founder of AI startup RunRL, and is intended as a response to a proposed California wealth tax. While the idea initially sparked widespread skepticism, Kaufmann insists it’s not a parody.
The proposed “Billionaire Tax Act,” introduced last year, would require Californians with over $1 billion in net worth to pay a one-time 5% tax on their total wealth. Backed by the state’s healthcare union SEIU, proponents argue the tax could fund vital public services and offset federal funding cuts. However, the policy has drawn fierce opposition from within the tech industry, with some prominent figures threatening to relocate or already leaving the state. A significant lobbying effort is currently underway in the California legislature to defeat the bill.
Kaufmann, who is no longer involved with RunRL, explained his motivation to the San Francisco Examiner, stating that the tax would be “quite damaging to the tech economy.” He elaborated on his concerns, arguing that the tax disproportionately impacts startup founders whose wealth is largely tied up in company equity. “They would be forced to liquidate shares on potentially unfavorable terms, incurring capital gains taxes and giving up control,” Kaufmann said. He also pointed to the difficulty of accurately valuing private companies, potentially leading to wildly disproportionate tax bills.
Kaufmann further argued against the tax by referencing Sweden’s experience with a similar wealth tax. “Sweden eliminated theirs 20 years ago to avert capital flight and promote entrepreneurship and now has 50% more billionaires per capita than the US,” he stated. This comparison highlights a core concern among opponents: that a wealth tax could incentivize high-net-worth individuals to leave California, diminishing the state’s economic base.
The march is scheduled to begin at at Alta Plaza Park in San Francisco’s Pacific Heights neighborhood, a location chosen for its association with wealth. Participants will then proceed to Civic Center for a rally at . The event’s website succinctly summarizes its message: “Vilifying billionaires is popular. Losing them is expensive.”
Despite the organized effort, the march is expected to be a relatively small affair. Kaufmann admitted he anticipates “a few dozen attendees,” acknowledging uncertainty about the final turnout. Online reactions have ranged from disbelief to mockery, with some social media users questioning the sincerity of the event. One user commented, “I can’t imagine billionaires marching in the street.”
Interestingly, the timing of the march comes amidst a broader debate about the economic impact of California’s proposed tax. While the legislation has faced strong opposition from the tech elite, it’s also worth noting that California Governor Gavin Newsom has already indicated he would veto the bill should it pass the legislature. This suggests the march, while a vocal expression of discontent, may be largely symbolic.
The proposed tax is not the first attempt to levy wealth-based taxes. Such proposals have been debated in various jurisdictions, often facing similar criticisms regarding potential capital flight and administrative complexities. The California proposal, however, has gained particular attention due to the state’s concentration of wealth and its prominent role in the tech industry.
The “March for Billionaires” underscores the growing tension between wealth inequality and the role of taxation in addressing it. While the event’s impact remains to be seen, it serves as a stark reminder of the deep divisions surrounding these issues and the willingness of some to publicly defend the interests of the ultra-wealthy.
