Palmer Luckey Vows to Stay in California and Fight Wealth Tax as Billionaires Flee
TL;DR
- Billionaire Anduril founder Palmer Luckey says he will stay in California and fight the proposed 5% wealth tax despite a growing exodus of tech elites.
- Luckey, a native Californian, argues the tax would punish founders, drive innovation out of state, and is unconstitutional.
- His pledge contrasts with other billionaires leaving California and puts Silicon Valley's future and state tax policy in the spotlight.
A NATIVE CALIFORNIAN DIGS IN
Palmer Luckey is not leaving California.
The billionaire founder of defense tech giant Anduril Industries told reporters this week he has no plans to flee the state over its controversial proposed wealth tax, breaking with a growing wave of tech elites relocating to Texas, Florida and other low-tax states.
Luckey, 33, who was born in Long Beach and built both Oculus VR and Anduril in Southern California, said California is his home and he intends to fight the proposal from inside the state rather than run from it.
CALIFORNIA'S PROPOSED WEALTH TAX EXPLAINED
The proposal at the center of the fight would impose a one-time 5% tax on billionaires' assets to help close California's budget deficit and fund public programs.
Backed by progressive lawmakers and labor groups, the measure would apply to worldwide net worth over $1 billion for California residents, including illiquid holdings like startup equity and stock options.
Critics, including Luckey and other founders, warn it would force entrepreneurs to sell shares to pay taxes on paper wealth, spark lengthy legal battles, and accelerate departures of high earners who already pay a large share of state income taxes.
WHY LUCKEY SAYS HE'S STAYING TO FIGHT
Luckey said his decision is both personal and strategic. Anduril, now valued at over $30 billion and a major Pentagon contractor, is headquartered in Costa Mesa and employs thousands in California.
He argued California still offers unmatched talent, universities, ports, and defense infrastructure that cannot be easily replicated in Austin or Miami, despite its high taxes and regulation.
Rather than move, Luckey said he will use his money and influence to oppose the wealth tax through lobbying, legal challenges, and supporting candidates who favor pro-innovation economic policies.
BREAKING WITH THE BILLIONAIRE EXODUS
Luckey's vow stands out as other prominent tech figures have left or threatened to leave California in recent years.
Elon Musk moved Tesla and SpaceX operations to Texas, while venture capitalists and crypto founders have increasingly shifted to Florida, Nevada, and abroad, citing taxes, housing costs, and regulatory scrutiny.
Luckey acknowledged he understands why they left, but said a mass exodus of builders would only cede California's future to policymakers pushing what he called punitive taxes.
WHAT IT MEANS FOR SILICON VALLEY AND CALIFORNIA'S FUTURE
The debate over the wealth tax has become a proxy battle for California's identity as the global capital of tech.
Supporters say billionaires should pay more to address homelessness, wildfire recovery, and budget shortfalls. Opponents warn even talk of the tax damages business confidence and pushes the next generation of startups to incorporate elsewhere.
For now, Luckey is betting that staying and fighting is more effective than fleeing — and that California can still be saved for founders who want to build there.
Get All The Latest Updates Delivered Straight To Your Inbox For Free!