Sarah Libby

I think Silicon Valley is almost uniformly opposed to the proposal.

Some pretty major tech CEOs are really upset and have either threatened to move or have already taken steps to move.

So even if folks are taking steps to leave the state now, it's essentially too late and the tax would apply to them.

And so I think that's why you're sort of seeing this explode out into the open far sooner than ballot measures typically generate a lot of debate.

A lot of these billionaires are sort of characterizing this as a plan that's being driven by California Democrats, and that's not necessarily true.

California is home to many major tech companies, and its budget is also very reliant on high earners who it taxes at a much higher rate than middle-income earners.

And so I think California Democrats are very mindful of wanting to avoid stifling innovation that...

the state relies on.