# Palmer Luckey Says He Will Stay in California and Oppose Proposition 40 By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/42042 Published: 2026-10-27T21:29:20.000Z Updated: 2026-10-27T21:29:20.000Z Section: Regulation > He criticized a provision tied to company voting rights. Proposition 40 would impose a one-time 5% tax on applicable individuals and trusts with net worth of at least $1 billion. Anduril co-founder Palmer Luckey says he will stay in California and oppose Proposition 40, a proposed billionaire tax whose rules for company control prompted his criticism. At an invite-only press conference on Monday, Oct. 26, Luckey said some billionaire friends had urged him to leave California. “But I’m planning on staying in California. I’m going to keep fighting it,” he said. He added that he believes the state can still address its problems. Luckey identified the measure’s treatment of company control as his main concern. “The biggest problem is the tax on control of your own company,” he said. He said Anduril employees hold a larger equity stake than he does, while he has kept voting rights. He said retaining those rights depends on his U.S. citizenship, residence in the country and continued leadership of Anduril. For some business holdings that give a taxpayer voting or direct-control rights, the measure treats the taxpayer’s ownership share as no smaller than that person’s share of those rights. David Gamage, a co-author of the measure, said its authors did not intend “to single out or penalize people based on ‘voting’ or ‘control’ shares.” Proposition 40 would impose a one-time 5% tax on applicable individuals and trusts with net worth of at least $1 billion. It applies to eligible California-resident individuals, with residency determined on Jan. 1, 2026. Wealth would be measured on Dec. 31, 2026. If approved, payments would be due in 2027. Taxpayers could pay in five annual installments, with an annual 7.5% charge on unpaid balances. The measure covers tangible and intangible personal property but does not specifically name cryptocurrency. After administrative expenses, it directs 90% of remaining revenue to health care and 10% to education and food assistance. TokenPost previously examined [revenue estimates and potential taxpayer departures](). California voters will decide on Tuesday, Nov. 3. ## Links in this article - [revenue estimates and potential taxpayer departures](https://www.tokenpost.com/news/regulation/37769)