Max Levchin says he'll "probably" leave California if Prop 40 passes

What Levchin said and why investors are listening

Affirm CEO Max Levchin said he would "probably" leave the state if Proposition 40 wins on Tuesday. He framed the fight in personal terms, calling it "emotional" and adding, "I love California. I think it's beautiful," even as he rejects the tax. His core objection: "the popular opinion saying 'Actually, we're totally OK with asset seizure because we just really, really need it,' I just think that is so wrong."

His practical worry is sharper.

What Proposition 40 would do and the battle around it

Prop 40 would set a one-time 5% tax on the state's richest residents to backfill healthcare funding shortfalls tied to big federal cuts. The healthcare-workers union behind the measure argues the money would help avoid outcomes that "could force hospitals to close and leave millions of Californians uninsured." The plan has divided political and business leaders, and critics are skeptical about whether it is workable or even lawful.

Opponents warn the levy would push wealthy residents, businesses and capital out of California. Tech founders have also cautioned that billionaires whose wealth sits mostly in company shares might have to sell stock to pay the bill, risking dilution of control at the companies they built. Supporters say the payment can be spread over five years for an added charge, giving time to adjust, and point to Mark Zuckerberg's approach described in a corporate filing: Meta created a separate series of non-voting shares for him to sell to fund the payment while preserving his control.

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Levchin's position, holdings and potential ripple effects

Levchin is the co-founder and CEO of Affirm, the San Francisco buy now, pay later firm he helped start in 2012. Affirm's market capitalization is nearly $25 billion. In 1991, after leaving Soviet Union era Ukraine as a 16-year-old political refugee, he arrived in the US; he would later move to Silicon Valley and go on to co-found the company that became PayPal.

He holds Affirm stock with super-voting rights and said he anticipates having to unload some of those shares to generate cash to cover the tax, something he has never done. He still anticipates Affirm will keep its San Francisco office; however, he warned the levy would create a "massive chilling effect" and might prompt other states to intensify bids to lure California companies. He also warned founders could think twice about starting new companies in California.

Levchin also argued California should have considered taxing borrowing against assets or raising inheritance taxes before moving to tax wealth itself.

Why it matters for your portfolio

The measure is narrowly aimed - a single 5% assessment on billionaires who lived in California on Jan. 1, 2026 - yet its repercussions could reach public markets. Founders with concentrated stakes and special voting shares may need to sell stock, potentially changing control dynamics. Proponents counter that five-year payment plans and creative share structures can blunt those pressures. Polling shows support below the majority required to pass, but the vote is Tuesday, and outcomes could shift founder behavior and corporate setups in the near term.

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