Coinbase CEO Brian Armstrong stated he is considering leaving California due to the state's proposed wealth tax, which he described as "deeply un-American." Armstrong, whose net worth is estimated at $8.8 billion, expressed concern that the tax, which would be a one-time 5% levy on the net worth of approximately 200 billionaires in the state, could be unconstitutional.
During an appearance on “The Katie Miller Podcast,” Armstrong argued that while he has paid significant income taxes, a tax on accumulated wealth feels akin to policies in "a third-world country." He believes such measures are detrimental to both California and the United States. He also noted that his opposition to additional taxes is exacerbated by perceived government fraud and waste.
Armstrong indicated that he is exploring "any and all options" for relocation. He previously told CNBC that he was contemplating moving his home out of California by the end of the year. Coinbase, a cryptocurrency exchange and wallet platform, maintains its largest office in San Francisco, although the company emphasizes a remote-first operational model. The company also has offices in several other U.S. cities and international locations, including London, Singapore, and Dublin.
California voters are scheduled to decide on Proposition 40, the proposed billionaire tax, in November. If approved, the tax is intended to generate funding primarily for healthcare services, with a smaller portion allocated to food assistance and education. This ballot measure comes as California's Medicaid program anticipates significant federal funding reductions.
Armstrong has been vocal about his views on cryptocurrency regulation and political figures. He praised former President Donald Trump's administration for its perceived crypto-friendly policies, contrasting it with the Biden administration, which he accused of actively trying to curtail the crypto industry. Armstrong attended a White House event where Trump urged Congress to pass the Clarity Act, a bill focused on cryptocurrency regulation.
Wealthy individuals have actively opposed the proposed California tax. Google co-founder Sergey Brin has reportedly spent over $100 million to fight the measure, which could cost him billions personally. Other notable figures, including Meta founder Mark Zuckerberg and venture capitalist Peter Thiel, have reportedly moved out of the state. Even California Governor Gavin Newsom has expressed reservations about the tax, warning of potential negative impacts on the state's economy, though he has voiced support for a national wealth tax.