Tech founder plans 'March for Billionaires' in San Francisco

Derik Kauffman, the founder of artificial-intelligence startup RunRL, is organizing a ‘March for Billionaires’ in San Francisco this coming Saturday to protest California’s proposed wealth tax. The protest targets the Billionaire Tax Act, a ballot initiative—a process that allows a public vote on proposed laws—that would require Californians with a total wealth of over $1 billion to pay a one-time 5% tax. The San Francisco Examiner first reported that Kauffman was the organizer behind the event. Kauffman, whose startup previously participated in the Y Combinator accelerator program, confirmed that he is organizing the rally independently without funding from outside groups.

Kauffman argues that the proposed wealth tax could be damaging to the tech economy, particularly in Silicon Valley. According to Kauffman, “This tax in particular is fatally flawed” because it would affect startup founders whose wealth exists primarily on paper. He states that many founders would be hit with wildly disproportionate tax bills and forced to liquidate private company shares on potentially unfavorable terms, incurring capital gains taxes and losing control of their companies. To support his argument, Kauffman points to Sweden, which eliminated its wealth tax 20 years ago to prevent capital flight—the movement of assets out of an economy—and encourage entrepreneurship. He notes that Sweden now has 50% more billionaires per capita than the U.S., arguing there is no precedent for such a comprehensive wealth tax in the U.S.

The planned march has met with skepticism and ridicule on social media, with users questioning if the event is a joke or satire, and others noting they cannot imagine billionaires marching in the streets. The event’s website features a tagline warning that while vilifying billionaires is popular, losing them is expensive. Kauffman acknowledges the online reaction but maintains the protest is real, though he expects it is likely to include only a few dozen attendees. He also noted that he is not aware of any actual billionaires planning to attend. Meanwhile, California Governor Gavin Newsom has stated that he is working to stop the Billionaire Tax Act from materializing. The legislation is backed by the Service Employees International Union (SEIU), a healthcare union.

Why it matters

The proposed Billionaire Tax Act in California has sparked significant pushback from tech industry figures, leading to organized protests and lobbying efforts to defeat the ballot initiative.