AI Startup Founder Organizes 'March for Billionaires' to Protest California's Proposed Wealth Tax
The controversy surrounding California's proposed wealth tax legislation has taken an unexpected turn. This week, amid escalating tensions within the tech community, a website promoting a "March for Billionaires" event in San Francisco emerged online, featuring the tagline: "Vilifying billionaires is popular. Losing them is expensive."
Initial reactions ranged from skepticism to outright disbelief, with many industry observers assuming the initiative was satirical in nature. However, the event organizer has now confirmed that the march is legitimate and scheduled for this coming Saturday.
According to the San Francisco Examiner, Derik Kaufmann, founder of AI startup RunRL and Y Combinator alum, has been identified as the sole organizer behind the demonstration. Kaufmann emphasized that the event operates independently, without financial backing or organizational support from external entities, corporations, or special interest groups.
In statements to media outlets, Kaufmann—who indicated he is no longer associated with RunRL—expressed concern that California's proposed wealth tax could prove "quite damaging to the tech economy." The legislation in question, the Billionaire Tax Act, was introduced in 2025 and would impose a one-time 5% levy on California residents with net worth exceeding $1 billion.
The policy, supported by SEIU (Service Employees International Union), California's healthcare union, is positioned by proponents as a mechanism to fund critical public services and offset recent federal funding reductions. However, the proposal has triggered significant opposition from prominent figures in the technology sector, with some threatening relocation or having already departed the state.
Key concerns raised by Kaufmann include:
• The tax targets startup founders whose wealth exists primarily as illiquid equity positions
• Forced liquidation of shares could occur under unfavorable market conditions
• Capital gains tax implications and potential loss of controlling interest
• Valuation challenges for private companies
• Disproportionate tax obligations relative to actual liquidity
• Lack of precedent for comprehensive wealth taxation in the United States
Kaufmann referenced Sweden's elimination of its wealth tax two decades ago to prevent capital flight and stimulate entrepreneurship, noting that the country now maintains 50% more billionaires per capita than the United States.
The announcement has generated considerable discussion across social media platforms, with responses oscillating between skepticism and mockery. Notably, Kaufmann acknowledged that he is not aware of any actual billionaires planning to attend the demonstration organized in their defense. Current projections estimate "a few dozen attendees," though Kaufmann admits uncertainty regarding final participation numbers.
The ongoing controversy carries an element of irony, as the legislation faces minimal probability of enactment. California Governor Gavin Newsom has publicly stated his intention to veto the bill should it reach his desk, effectively neutralizing its prospects regardless of legislative progression.
Sources:
March for Billionaires Official Website
Billionaire Tax Act Documentation
