RT TBPN: a16z's @bhorowitz says the California wealth tax is the "best strategy" to dismantle Silicon Valley that he's ever seen. "It's been so hard t...
In a January interview, a16z's Ben Horowitz argued that California's proposed wealth tax is the most effective strategy he has seen to dismantle Silicon Valley. He cited Norway's unrealized capital gains tax as a cautionary example, noting it drove tech entrepreneurs and talent out of the country, leaving almost none behind.
Background
- This is a tweet from Naval Ravikant (entrepreneur, co-founder of AngelList) reposting a video of Ben Horowitz, co-founder of a16z (Andreessen Horowitz), one of Silicon Valley's most powerful venture capital firms.
- The "California wealth tax" refers to a proposed state tax on very high net worth — an annual tax on wealth, not just income. Horowitz calls it an "unrealized capital gains tax" because it would tax the paper value of private-company stock that hasn't been sold, creating a liquidity crisis for founders with illiquid shares.
- His argument: Norway has such a tax, and virtually all of its tech entrepreneurs left the country, making it impossible to build a tech ecosystem there. He warns the same would happen to Silicon Valley.
- This is part of a long-running political debate: California has proposed wealth taxes (like 2024's Assembly Bill 310) to fund social programs. Critics say it would drive founders and investors to Texas or Florida, breaking the network effects that make Silicon Valley dominant.