Coinbase CEO Threatens California Exit Over Proposed Billionaire Tax

Coinbase CEO Brian Armstrong has threatened to relocate his company out of California due to the state's proposed billionaire tax. He described the plan as 'deeply un-American' and unconstitutional, saying that it resembles a third-world country.

Armstrong argued that he has paid plenty of taxes on his income but is opposed to an extra wealth tax on assets. He claimed that there was too much fraud and waste in the government, which made him hesitant to support additional taxes.

The proposed billionaire tax, known as Prop 40, would impose a one-time 5% tax on the net worth of roughly 200 billionaires living in California. The tax is expected to generate $25 billion for healthcare services in the state, with the remaining 10% going towards food assistance and education.

Armstrong's comments come as tech founders are fleeing California due to the proposed tax. Google co-founder Sergey Brin has spent over $100 million fighting the rule, which would cost him more than $13 billion personally.