Key Takeaways
- • Palmer Luckey, Oculus VR and Anduril cofounder with a net worth of about $5.9 billion according to Forbes, opposes California's proposed Proposition 40 billionaire tax but says he is staying in the state.
- • Prop 40 would impose a one-time 5% tax on residents with assets over $1 billion, with the state projecting tens of billions of dollars in temporary revenue over several years, according to the source article.
- • Tech billionaires have raised more than $340 million and spent over $1 million daily to defeat the measure, according to The Guardian, with Peter Thiel, Eric Schmidt, Tony Xu and Patrick Collison among contributors to the opposition campaign.
- • Sergey Brin and Larry Page moved business entities to Florida and Nevada before the January 1, 2026 residency cutoff, while Travis Kalanick changed his address to Austin.
- • Prop 40 faces a vote in the November 2026 midterm elections, and Luckey's objections center on how unrealized assets would be valued and how the revenue would be spent.
Summary
Palmer Luckey, the 34-year-old cofounder of Oculus VR and Anduril, is opposing California's proposed Proposition 40 but has decided to remain in the state. Forbes estimates his net worth at about $5.9 billion. Speaking at a press conference, reported by TechCrunch, Luckey said the measure "is going to cause a lot of problems" and that it is prompting people he would prefer to keep in California to leave. "As of right now, though, I'm not running. I am staying," he said. "I think California is something special. I want to fight for California."
Luckey's objections are specific. He said he is willing to pay more in taxes but objects to the bill's sponsor, a union under United Healthcare Workers, directing the revenue toward its own uses. He also questions how the bill would assess what is owed, and he is concerned that illiquid and unsold assets would be counted toward a person's fortune, which he described as a "seizure of future wealth." Prop 40's sponsors have said the funds would support California's health care, education and food assistance. Luckey's Oculus was founded in Irvine and sold to Facebook for an estimated $2 billion in 2014, and Anduril, headquartered in Costa Mesa, was valued at $90 billion earlier this month following an employee tender offer.
The measure has divided California's wealthy. Prop 40 would impose a one-time 5% tax on residents with assets above $1 billion, and the state hopes it will raise tens of billions of dollars in temporary revenue over several years. California has the highest number of billionaires in the U.S. According to The Guardian, tech billionaires have raised more than $340 million and spent more than $1 million per day opposing the measure. Contributors include Palantir cofounder Peter Thiel, former Google CEO Eric Schmidt, DoorDash's Tony Xu and Stripe's Patrick Collison. Before the January 1, 2026 residency cutoff, Larry Page and Sergey Brin moved their business entities to Florida and Nevada, and Travis Kalanick changed his address to Austin. Peter Thiel and Mark Zuckerberg have also relocated to more tax-friendly areas.
Not all billionaires are leaving. Nvidia CEO Jensen Huang, with a net worth of about $180 billion, has said "the more you make, the more taxes you pay. And I'm okay with that," and told CBS Sunday Morning he can afford to pay $8 billion in taxes over five years. Luckey acknowledged friction with billionaire peers who argue that staying undermines their opposition. "I empathize with that argument, but it's not one that I'm going to participate in right now because I still believe that we can fix things," he said. Fortune reached out to Anduril for comment.
Luckey's objections are specific. He said he is willing to pay more in taxes but objects to the bill's sponsor, a union under United Healthcare Workers, directing the revenue toward its own uses. He also questions how the bill would assess what is owed, and he is concerned that illiquid and unsold assets would be counted toward a person's fortune, which he described as a "seizure of future wealth." Prop 40's sponsors have said the funds would support California's health care, education and food assistance. Luckey's Oculus was founded in Irvine and sold to Facebook for an estimated $2 billion in 2014, and Anduril, headquartered in Costa Mesa, was valued at $90 billion earlier this month following an employee tender offer.
The measure has divided California's wealthy. Prop 40 would impose a one-time 5% tax on residents with assets above $1 billion, and the state hopes it will raise tens of billions of dollars in temporary revenue over several years. California has the highest number of billionaires in the U.S. According to The Guardian, tech billionaires have raised more than $340 million and spent more than $1 million per day opposing the measure. Contributors include Palantir cofounder Peter Thiel, former Google CEO Eric Schmidt, DoorDash's Tony Xu and Stripe's Patrick Collison. Before the January 1, 2026 residency cutoff, Larry Page and Sergey Brin moved their business entities to Florida and Nevada, and Travis Kalanick changed his address to Austin. Peter Thiel and Mark Zuckerberg have also relocated to more tax-friendly areas.
Not all billionaires are leaving. Nvidia CEO Jensen Huang, with a net worth of about $180 billion, has said "the more you make, the more taxes you pay. And I'm okay with that," and told CBS Sunday Morning he can afford to pay $8 billion in taxes over five years. Luckey acknowledged friction with billionaire peers who argue that staying undermines their opposition. "I empathize with that argument, but it's not one that I'm going to participate in right now because I still believe that we can fix things," he said. Fortune reached out to Anduril for comment.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.