From TechCrunch · Julie Bort · · 1m 20s
Palmer Luckey Stays in California Despite Wealth Tax
Billionaire Palmer Luckey vows to fight California's proposed wealth tax, not leave state.
In brief
Billionaire Palmer Luckey vows to fight California's proposed wealth tax, not leave state. Palmer Luckey, founder of $61 billion defense tech firm Anduril, says he won't leave California over a proposed wealth tax that could tax 5% of his company's value. Originally reported by TechCrunch.
Palmer Luckey's California Roots
Palmer Luckey founded Oculus VR at 21 and now leads $61 billion defense tech firm Anduril in California.
Wealth Tax Opposition
Luckey says California's proposed wealth tax would cause companies to leave the state and harm his business.
Billionaire Pressure
Other billionaires urged Luckey to leave California to show consequences of the tax policy.
Tax Sponsorship Concerns
The tax bill is sponsored by United Healthcare Workers, which wants funds for health care, education, and food assistance.
Tax Assessment Issues
The tax would include unrealized assets and illiquid assets, with penalties up to 40%.
Voting Rights Problem
The tax could tax Luckey as if he owned 40% of Anduril when he only has 10% ownership.
Voting Control Stakes
Luckey's voting rights in Anduril end if he leaves California, affecting his defense contracts.
Tax Bill Impact
Luckey could owe $3 billion on Anduril alone, but plans to stay and fight the tax.
The key point
Palmer Luckey, founder of $61 billion defense tech firm Anduril, says he won't leave California over a proposed wealth tax that could tax 5% of his company's value.
