Jensen Huang isn’t against California’s proposed billionaire tax. While other wealthy tech executives are funding efforts to defeat Proposition 40 or have reduced their ties to the state, the Nvidia CEO said he doesn’t mind paying more. The ballot measure would impose a one-time tax equal to 5% of the wealth of California residents worth more than $1 billion. If voters approve the measure on November 3, Huang could face an estimated $8 billion bill, paid over five years. However, he said he could afford it because of the opportunities he received in the US.“The fact that I can afford to pay $8 billion in taxes over five years is a privilege,” he told CBS. “I’m not afraid of paying taxes. I’m just afraid of being poor.” Huang, who has spent decades living and building Nvidia in California, said education, access to talented people and the freedom to start a company helped make his career possible.
What California’s Proposition 40 would do to billionaires
Starting January 2026, Proposition 40 would apply to California residents with a net worth of more than $1 billion. It would impose a single charge on accumulated wealth, including investments and business holdings, rather than an annual income tax.The money would support state healthcare, public education, and food assistance programs. The tax could be paid in five yearly instalments. California’s official voter guide confirms that the measure would collect 5% of a qualifying resident’s wealth.Opponents argue that the measure could push wealthy residents out of California and reduce the income-tax revenue they would otherwise pay in future years. Supporters say billionaires can contribute more without substantially changing their standard of living.
Billionaires spend millions fighting the measure
Technology billionaires and other wealthy donors have supplied more than $340 million to campaigns opposing Proposition 40 and related ballot measures. The opposition has reportedly spent more than $1 million a day.Google co-founder Sergey Brin has been a major contributor to the campaign, while former Google CEO Eric Schmidt and other Silicon Valley figures have also opposed the tax. Brin, Google co-founder Larry Page and former Uber CEO Travis Kalanick were among the wealthy executives who changed business or residential ties before the January cutoff.Huang has taken a different position. “I don’t mind paying taxes. The more you make, the more taxes you pay. I’m okay with that,” he said. “I am the ultimate American Dream.”
Why Huang says billionaires should remain in California
Huang has argued that California’s skilled workforce and culture of technology development outweigh its high taxes. Nvidia is headquartered in Santa Clara, near engineers, researchers, and other Silicon Valley companies.“I say to everybody, ‘Move to California, don’t leave.’ It’s the highest taxes in the world, but it’s okay,” Huang said during an earlier appearance at Stanford Graduate School of Business.His acceptance of Proposition 40 does not mean he supports every proposed technology-related tax. Huang has questioned suggestions that companies should pay taxes on robots or AI tokens, arguing that governments could find other ways for productive businesses and individuals to contribute.