Armstrong Considers Leaving California if Billionaire Tax Passes

Coinbase's billionaire CEO Brian Armstrong may leave California before the end of the year if Proposition 40, which imposes a one-time 5% tax on individuals worth $1 billion or more, passes. The measure would raise 'tens of billions of dollars spread over several years' from roughly 200 Californians.

Armstrong's net worth is estimated at $7.3 billion by Forbes, and the 5% levy would amount to approximately $365 million. He expressed concern about double taxation and the potential for asset seizures under Proposition 40.

'I think it's a dangerous precedent to get into asset seizures,' Armstrong said on CNBC. 'That's the kind of thing that third-world countries do.' He also noted that the tax would be a challenge due to its impact on businesses like Coinbase, which has its executive offices in New York and is incorporated in Texas.

The measure attaches liability to anyone who was a California resident on January 1, 2026, meaning that even if Armstrong were to move out of the state this autumn, he would still owe the tax. The nonpartisan Legislative Analyst's Office estimates that Proposition 40 would raise tens of billions of dollars over several years from roughly 200 Californians.

Armstrong is not a bystander in this issue; he and Ripple co-founder Chris Larsen have helped start a committee against the measure, Golden State Promise, which has raised $10.45 million so far.