Palmer Luckey Rejects Billionaire Exodus Over California Tax Plan

Luckey faces significant pressure from peers who argue that staying in California validates policies they deem punitive. He described the situation as a source of friction among his social circle, noting that other billionaires have urged him to join their departure to force the state’s hand. Despite his empathy for their position, Luckey remains committed to his home base, viewing the exodus as a defeatist strategy rather than a constructive response to the ballot measure.

The proposed tax targets net worth, including unrealized and illiquid assets, with penalties reaching 40%. Luckey is particularly critical of how the bill treats voting control, arguing that it could effectively tax founders based on their corporate influence rather than actual equity. For his own company, Anduril, he estimates the tax could result in a $3 billion bill. He contends that the legislation is a thinly veiled mechanism for special interest groups to capture wealth, rather than a genuine funding solution for public services like Medi-Cal.

Beyond the financial implications, Luckey’s decision to stay is tied to the structure of his defense contracting business. He maintains that his voting rights—which are critical to his leadership at Anduril—are contingent upon his residency. By remaining in California, he plans to challenge the constitutionality of the tax, specifically targeting the taxation of voting interests and the retroactive nature of the proposed asset seizure. He hopes legal intervention will succeed where the current political climate has failed.