A billionaire tech founder has disclosed that he still opts for economy class flights despite his immense fortune, while issuing a stark warning that a proposed wealth tax in California could force the closure of his Silicon Valley company.
The Coach-Class Philosophy of a Billionaire
Palmer Luckey, the 33-year-old founder of defence technology startup Anduril, explained his choice to fly coach is a deliberate move to lead by example for his employees. Valued at an estimated $3.5 billion by Forbes, Luckey stated on the My First Million podcast that if he expects his staff to be frugal with company travel, he must adhere to the same standard.
"If I'm going to ask my employees to do it, I need to do it too, even when it's my own money," Luckey said. He added that not doing so would make him seem out of touch with the experiences of his workforce. His comments, originally made in October 2022, have recently resurfaced.
Luckey framed the decision as a reasoned business choice, arguing that with significant travel across the company, splurging on premium seats would consume a serious portion of resources. "It's only a few hours," he remarked, describing business or first-class tickets as a poor use of company funds.
A Dire Warning Over California's Proposed Wealth Tax
Luckey's frugal travel habits contrast sharply with his fierce opposition to a proposed California billionaires' tax. The measure would impose a one-time levy of five percent on the net worth of state residents whose wealth exceeds $1 billion, targeting assets like stocks, bonds, and intellectual property.
On social media platform X, Luckey railed against the proposal, suggesting it would compel founders like him to sell large stakes in their companies. "You are fighting to force founders like me to sell huge chunks of our companies to pay for fraud, waste, and political favours," he wrote.
He outlined his contribution: making money from his first company (Oculus), paying hundreds of millions in taxes, and using the remainder to found Anduril, which now employs 6,000 people. The new tax, he fears, would require him and his co-founders to "somehow come up with billions of dollars in cash."
Luckey expressed grave concerns about the consequences of being unable to pay, warning the state could seize his home and garnish his wages indefinitely. A market downturn or other financial restriction, he argued, could ruin him financially for life.
Safety Concerns and a Silicon Valley Exodus
When questioned about safety risks associated with flying commercially, Luckey acknowledged having adversaries, including "Mexican cartels" and those foiled by Anduril's defence products. However, he assessed that dining in public posed a higher risk than a flight, as an attack would more likely occur at a predictable location.
Luckey is not alone in his apprehensions. The proposed tax has reportedly triggered moves away from California by other tech titans. Google co-founders Sergey Brin and Larry Page have shifted much of their business operations out of the state. Investor Peter Thiel opened a Miami office for his firm, and tech investor David Sacks relocated his office to Austin, Texas.
Venture capitalist Chamath Palihapitiya also stated he had given "serious consideration" to moving to Texas if the tax proceeds. The proposal must still gather enough signatures for the November ballot and win voter approval. If passed, it would apply retroactively from January 1, 2026, with a five-year payment window for those affected.
