# An AI Startup Founder Says He’s Planning a ‘March for Billionaires’ in Protest of California’s Wealth Tax
In a bold and unconventional move, Derik Kaufmann, founder of AI startup RunRL, has announced plans for a “March for Billionaires” in San Francisco this Saturday to protest California’s proposed **2026 Billionaire Tax Act**.[2][3] The event, advertised with the tagline “Vilifying billionaires is popular. Losing them is expensive,” aims to highlight the economic risks of the wealth tax targeting individuals with net worth over $1 billion.[2][3]
## The Proposed Tax Sparking the Outrage
The **2026 California Billionaire Tax Act** would impose a one-time 5% tax on the net worth of Californians worth more than $1 billion, covering assets like businesses, securities, art, collectibles, and intellectual property—but excluding personally owned real estate (though company-held real estate could count).[1][2] Backed by SEIU-United Healthcare Workers West, the measure is pitched as an emergency fix for the state’s healthcare system amid potential federal funding cuts, with 90% of proceeds earmarked for public health services, education, and food assistance.[1]
Proponents argue billionaires pay lower effective tax rates than working families and should contribute their “fair share” to avert a healthcare collapse.[1] A February 2026 Nestpoint survey showed 60% support among likely voters, even as many acknowledged it could trigger business exits and job losses.[1] Initial estimates pegged revenue at $100 billion to plug budget gaps, though recent billionaire departures may reduce that haul.[3][5]
## Kaufmann’s Rally: A Solo Stand for Tech Founders
Kaufmann, a Y Combinator alum no longer involved with RunRL, insists the march is his independent effort—no funding from billionaires or big tech.[2] He told TechCrunch the tax is “fatally flawed,” especially for startup founders whose **paper wealth** in private companies would force unfavorable share liquidations, capital gains taxes, and loss of control.[2] Valuing illiquid private firms poses huge challenges, potentially hitting founders with “wildly disproportionate” bills.[2]
He cited international precedent: Sweden scrapped its wealth tax two decades ago to stem capital flight and boost entrepreneurship, now boasting 50% more billionaires per capita than the U.S.[2] Kaufmann expects “a few dozen attendees” but no confirmed billionaire participants, fueling online skepticism and ridicule like “I can’t imagine billionaires marching in the street.”[2]
The event site claims the tax has already driven Google founders Larry Page and Sergey Brin to relocate LLCs out of state before January 1, 2026, taking economic contributions with them.[3] It also flags how the tax overvalues voting shares, complicating founder control.[3]
## Broader Backlash from Experts and Leaders
Critics warn the tax is “economically disastrous,” siphoning capital from productive assets like stocks, real estate, and machinery that fuel housing, jobs, and innovation.[1] Adam Michel of the Cato Institute explained wealth taxes differ from income taxes: if a business returns less than 5%, it equates to a 100%+ income tax rate, killing incentives to grow or maintain assets.[1]
Even Governor Gavin Newsom opposes it, aware of the risk to California’s tax base, with an exodus already underway among high earners.[1][2] Michel predicts less investment in startups, equipment, and housing, hurting everyone—not just the ~200 targeted billionaires.[1] SEIU-UHW dismissed exodus claims as “sensationalized,” citing no public confirmations of mass flight.[1]
## Why This Matters for Silicon Valley and Beyond
The “March for Billionaires” underscores deepening rifts in California’s tech ecosystem. While voter support is strong, the proposal’s odds are slim: Newsom has vowed a veto if it reaches his desk via November ballot.[2] Polling shows awareness of downsides like job losses, yet populist appeal persists amid budget woes.[1]
For startups, the threat alone could accelerate flights to entrepreneur-friendly states like Texas or Florida. Kaufmann’s quixotic rally—real, not satire—symbolizes frustration over policies that could kneecap innovation hubs like Silicon Valley.[2][3] As one social media user quipped, the irony of a non-billionaire marching for them highlights the stakes: vilifying wealth may feel good, but losing it could cost California dearly.[2]
This saga is the latest in the “billionaire game of chicken,” pitting public needs against economic engines.[5] With signature-gathering underway, opponents hope to derail it before ballots. Whether Kaufmann’s march draws crowds or crickets, it spotlights a pivotal debate: Can California tax its way to prosperity without driving away the golden geese?[1][2]
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Original source: TechCrunch – An AI startup founder says he’s planning a ‘March for Billionaires’ in protest of California’s wealth tax
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