Oculus founder and Anduril CEO Palmer Luckey announced he will stay in California to oppose a proposed billionaire wealth tax, resisting peer pressure to relocate over the measure.
Why does he want to stay in California?
Lucky's current company is Anduril, a California-based defense technology company recently valued at $61 billion. In a press conference, he said he is under pressure from billionaire friends to leave with them in protest, but he prefers to stay.
Lucky opposes the proposed tax because the initiative is backed by a health care workers union. On the other hand, supporters of the measure say the money raised would go to health, education and food assistance programs.
How does tax affect businesses?
The proposal would tax assets that have not been converted into cash, with penalties of up to 40%. Lucki argues that the tax targets control, not just ownership, particularly affecting founders who retain increased voting rights in their companies.
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As he noted, Anduril employees own a larger stake than he does, but he retains voting rights. Luckey explained that he would lose those rights if he ceased to be a U.S. citizen living in America and running Anduril.
How much will the meter cost him?
Based on Anduril's $61 billion value and a 5% tax, Luckey estimates he could be forced to pay around $3 billion. He plans to stay in California to fight the measure and hopes there will be legal challenges if it eventually passes.
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