An AI Startup Founder Says He’s Planning a ‘March for Billionaires’ in Protest of California’s Wealth Tax

In a bold and provocative move, Derik Kauffman, founder of an AI startup that participated in Y Combinator, organized the “March for Billionaires” in San Francisco to protest California’s proposed one-time 5% wealth tax on individuals worth over $1 billion.[1][3] The event, held on a recent Saturday at the San Francisco Civic Center and later moving toward City Hall, drew a small crowd of about a dozen supporters amid heavy media presence and counter-protesters, highlighting deep divisions over wealth inequality and economic policy.[1][4][5]

Kauffman, who clarified he is not a billionaire himself nor funded by them, emphasized the march’s seriousness despite its satirical-sounding name.[1][3] “Vilifying billionaires is popular. Losing them is expensive,” read the event’s website tagline, capturing the organizer’s core argument.[3] He told the San Francisco Examiner that the protest aims to “change the sentiment on this to recognize that billionaires have done a lot for us and communicate that we’re glad they’re here.”[1] Kauffman, formerly involved with AI firm RunRL, expressed fears that the tax would harm Silicon Valley’s startup ecosystem by forcing founders to liquidate “paper” shares in private companies at unfavorable terms, triggering capital gains taxes and diluting control.[3]

The Billionaire Tax Act, formally the “2026 California Billionaire Tax Act,” targets roughly 200 billionaires in the state—whose collective wealth hit $2.2 trillion in October—levying a one-time 5% on net worth above $1 billion.[2][4] Covered assets include businesses, securities, art, collectibles, and intellectual property, but exemptions apply to personally owned real estate, pensions, and retirement accounts (though company-held real estate could still count).[2][4] Backed by SEIU-United Healthcare Workers West, the initiative seeks to raise tens of billions for public healthcare amid federal cuts to Medicaid and the Affordable Care Act from the Trump administration.[1][2]

Supporters argue it ensures billionaires pay their “fair share,” noting they often face lower effective tax rates than working families.[2][4] A February 2026 Nestpoint survey showed 60% of likely voters back the tax, even as a majority anticipate a business exodus and job losses.[2] SEIU-UHW chief of staff Suzanne Jimenez highlighted the urgency: “California’s billionaires pay much lower tax rates than what working families pay out of every paycheck.”[2] Researchers from UC Berkeley, UC Davis, and the University of Missouri reinforced this, finding U.S. billionaires pay less in taxes relative to income than average Americans.[4]

Opposition, however, is fierce, led by California Governor Gavin Newsom, who vowed to defeat or veto the measure: “This will be defeated—there’s no question in my mind. I’ll do what I have to do to protect the state.”[1][3] Newsom and tech leaders worry it will accelerate an exodus of wealth creators. Signs of flight are already evident: Google co-founders Larry Page and Sergey Brin have cut financial ties, with entities like T-Rex Holdings relocating from Palo Alto to Reno.[1][4] Economist warnings label the tax “economically disastrous,” predicting devastation to the tax base as high-net-worth individuals flee.[2]

California’s nonpartisan Legislative Analyst’s Office (LAO) offered a measured critique, estimating short-term gains but long-term losses: “It is likely that some billionaires decide to leave California. The income taxes they currently pay to the state would go away… The reduction in state revenues… could be hundreds of millions of dollars or more per year.”[1][4] The LAO noted uncertainties from stock market volatility and behavioral responses, warning that while funds could temporarily support healthcare, education, and other services, they’d be fleeting, straining the general budget.[1]

The march itself became a spectacle. Starting at Alta Plaza Park in the Fillmore District, the handful of participants marched to City Hall, outnumbered by media and opponents.[5] Small business owner John Quillinan voiced outrage: “The fact that that is not acceptable to them makes me sick to my stomach. I would give up five percent of my net worth… to help my community.”[5] Kauffman acknowledged the provocation: “I also think if it were not called what it was, then it would not have gotten the attention that it did.”[5] Despite the low turnout, he insisted, “This tax will drive billionaires out; it already has.”[4]

This clash underscores broader tensions in California, the state with the most billionaires. Tech’s innovation engine clashes with demands for equity amid housing crises, healthcare strains, and budget woes. The ballot initiative remains in signature-gathering for November’s vote, but Newsom’s opposition makes passage unlikely.[2][3] Polling suggests public sympathy for taxing the ultra-wealthy, yet economic ripple effects loom large.[2]

Kauffman’s stunt, though modest, amplifies a tech chorus: preserve the ecosystem that birthed giants like Google and countless startups. Critics counter that true fairness requires addressing disparities now. As California navigates this, the “March for Billionaires” symbolizes how even symbolic protests can spotlight policy fault lines.

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Original source: TechCrunch – An AI startup founder says he’s planning a ‘March for Billionaires’ in protest of California’s wealth tax