Tech founder Derik Kaufmann confirms 'March for Billionaires' is not hoax

The debate over California’s proposed "Billionaire’s Tax" has taken a surreal turn with the announcement of a "March for Billionaires" in San Francisco.

Initially dismissed as a satirical hoax, the event is very much real, organised by tech founder Derik Kaufmann. His website carries the pithy warning: “Vilifying billionaires is popular. Losing them is expensive.”

Kaufmann, formerly of the startup RunRL, is self-funding the rally to protest the Billionaire Tax Act. This legislation would impose a one-time 5% tax on Californians worth over $1 billion.

Speaking to TechCrunch, Kaufmann argued the policy is "fatally flawed," particularly for those whose wealth exists only on paper. “It hits startup founders whose wealth is only on paper. They would be forced to liquidate shares on potentially unfavorable terms, incurring capital gains taxes and giving up control,” he stated.

He further warned that “many founders would be hit with wildly disproportionate tax bills,” noting that similar taxes were scrapped in Sweden to prevent capital flight.

Despite the grand title, the march is unlikely to be a star-studded affair. Kaufmann admitted he isn't aware of any actual billionaires attending, expecting only "a few dozen" supporters.

The irony of the situation is that the bill is almost certainly doomed; Governor Gavin Newsom has already pledged to veto it. Nevertheless, the protest highlights the deep-seated anxiety in Silicon Valley.

For Kaufmann, it is a necessary stand against a policy he believes would be "quite damaging to the tech economy," even if he has to march for the ultra-rich largely on his own.