Venture capitalist Peter Thiel has contributed $3 million to a California business group opposing a proposed billionaire wealth tax. The donation, made on December 29, is his largest political check in years and positions him as an early financier against the 2026 Billionaire Tax Act.
The money went to the California Business Roundtable, a Sacramento lobbying group representing large employers. This is the first publicly known seven-figure donation linked to opposition of the tax proposal. The New York Times first reported the contribution based on public disclosure.
While not formally restricted to the tax fight, the Roundtable is expected to be a central organization funding business efforts to defeat the measure. Group president Rob Lapsley said he is actively seeking major donors across the state to build corporate and elite support against the tax and other business-unfriendly proposals.
The proposed tax would impose a one-time 5% levy on net worth exceeding $1 billion for California residents as of January 1, 2026. It targets assets including privately held businesses, stocks, bonds, art, collectibles, and intellectual property rather than income. Real estate and certain retirement accounts would be excluded.
If approved by voters, the tax would be calculated on asset values at the end of 2026, with payments beginning in 2027. Billionaires could choose to spread payments over five years but would face an additional 7.5% annual charge on unpaid balances.
The proposal has prompted concern among California's ultrawealthy, with some founders and investors considering moves to other states or reducing California ties. Several billionaires have already left the state in recent years, and business leaders warn the tax could accelerate departures and harm the state's tech innovation ecosystem.
Thiel, who acquired property in Miami years ago but remains connected to Silicon Valley through investments and board roles, has chosen political opposition rather than distance. He told Joe Rogan in 2023 that Miami real estate prices were too expensive. Other tech figures like Chamath Palihapitiya and Bill Ackman have publicly criticized the tax, arguing it would discourage entrepreneurship and risk-taking.
In an unusual alignment, some billionaire donors and Democratic Governor Gavin Newsom oppose the tax. Newsom has called it bad policy and warned that discussing the idea has already damaged California's reputation among the global wealthy.
The campaign remains in early stages, with supporters needing nearly 900,000 valid signatures to place the measure on the November ballot. Opponents predict over $75 million could ultimately be spent to defeat the initiative, with Thiel's $3 million donation serving as an opening move in what may become one of 2026's most watched economic battles.