Billionaire Peter Thiel isn’t playing over a controversial billionaire tax plan that’s seen some of California’s richest people packing their bags.
Thiel Capital, the PayPal co-founder’s investment firm, is opening a new office in Miami as reports surface that he is especially peeved about the 5% wealth tax that could hit him with a $1.2 billion bill, according to a Wednesday press release.
The firm signed a new lease this month in the Wynwood area of Miami, per the release.
“Mr. Thiel has established a significant presence in Miami over the last several years, maintaining a personal residence in the city since 2020,” the firm announced. “Founders Fund, the venture capital firm cofounded by Mr. Thiel and of which he serves as a partner, has maintained an office in Miami since February 2021.”
Thiel, who owns a home in the Hollywood Hills, is among the ultra-wealthy Californians taking steps to change their residences in the event the billionaire tax is approved by voters.
Establishing a clear presence in another state is key to winning a residency challenge by the California Franchise Tax Board, billionaire tax advisor David Lesperance previously told The Post.
The initiative, which must gather about 870,000 signatures to make the November 2026 ballot, would impose a 5% one-time tax on the assets of roughly 200 billionaires in order to replenish health care funds that were lost thanks to federal funding cuts, according to the union behind the plan.
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Other billionaires who have blasted the tax include former Facebook exec Chamath Palihapitiya and hedge funder Bill Ackman, who is not a California resident but told The Post that “literally no one would stay” if the tax passes.
Companies associated with Google co-founder Larry Page, who could be facing a $12 billion tax bill, filed documents to incorporate in Florida to potentially avoid the tax, according to the New York Times.
Alex Spiro, Elon Musk’s lawyer, warned California Gov. Gavin Newsom — who opposes the proposed tax — to step in and help kill it or face an exodus of much-needed wealth and capital from the Golden State.
“Our clients have made clear they will permanently relocate if subjected to this tax,” Spiro wrote on behalf of unnamed billionaire clients.
Advocates of the billionaire tax, including the union listed as chief sponsor, SEIU-United Healthcare West, argue that the tax is minor and fears of capital flight are overstated.
However, even the California Secretary of State acknowledged in its written ballot measure summary that any revenues from the billionaire tax could be wiped out by income tax losses in the “hundreds of millions of dollars or more per year” if the ultra-rich leave for greener pastures.
Proponents have estimated the tax would raise roughly $100 billion over five years.
