unrealized gains

San Jose Mayor Matt Mahan opposes a proposed 5% wealth tax on California billionaires. He argues it will harm residents and the innovation economy, potentially increasing costs for working families. The measure, aiming to fund healthcare, faces criticism for potentially taxing unrealized capital gains. Tech leaders fear it will drive businesses and entrepreneurs out of state. While some support a wealth tax, concerns exist about its impact on startup founders with illiquid assets. The initiative requires significant signatures to appear on the ballot.

A proposed wealth tax in California, supported by Rep. Ro Khanna and labor unions, targets billionaires with a 5% levy on assets to fund healthcare. This initiative faces strong opposition from Silicon Valley tech leaders who warn of a talent exodus, with venture capitalists criticizing Khanna’s approach. The tax could affect unrealized gains for startup founders. While Khanna advocates for adjustments for startups, Governor Newsom expresses caution. Public support for taxing the wealthy is high, though Republicans are reportedly gaining ground in Silicon Valley. Khanna’s safe congressional seat, however, offers him electoral protection.