Silicon Valley Millionaire Advocates for Wealth Tax

Scott Ellis, a 55-year-old millionaire living in Silicon Valley, is publicly advocating for higher taxes on the wealthy, including himself. He believes that accumulating excessive wealth poses a threat to democracy and that the current economic structure requires significant reform.

As a member of the Patriotic Millionaires, Ellis supports California's proposed wealth tax on billionaires. However, he views this state-level initiative as merely a starting point, emphasizing the need for comprehensive federal tax reforms to address wealth inequality effectively.

Ellis's path to wealth began far from the West Coast. He grew up in Colorado and attended college in Boston before moving to Texas. His arrival in California was driven by academic and professional ambitions rather than tax considerations. He enrolled at Stanford for business school, drawn by the opportunity to study there and the climate that allowed for year-round golf.

Despite his current advocacy for tax reform, Ellis clarifies that financial policy never influenced his decision to reside in California. "Taxes have never been anywhere on our list of criteria for deciding where to live," he notes. Instead, his relocation was motivated by family proximity, the weather, and the region's professional dynamism. He views taxes as a necessary contribution to society.

Taxes are the price that we pay to live in a civil society. We have to do this together.

Ellis's financial success is a result of a dual-career household. He holds an undergraduate degree from Harvard and worked for McKinsey for three years before earning his graduate degree at Stanford. He spent nearly eight years at Hewlett-Packard early in his career. In 2007, a pivotal decision was made regarding his professional trajectory.

At the time, his wife was a Vice President at Yahoo, and the couple had two young children. After evaluating the career paths of his superiors, Ellis decided to step back from the corporate ladder to become a stay-at-home parent. His wife continued a highly successful career in consumer internet, working for Yahoo, Google, and Pinterest.

Beyond his corporate background, Ellis has a history of engagement in the nonprofit sector. He eventually became the Chief Operating Officer and then the Chief Strategy Officer of the New Teacher Center, an organization focused on mentoring new educators. Since 2012, he has founded and managed several nonprofits in the education space and has advised nearly 200 individuals and organizations on strategy and operations.

Ellis's perspective on wealth was shaped during his college years, where he studied sociology, poverty, and urban issues. These academic interests resurfaced as his career progressed, leading him to question the distribution of resources. He is particularly struck by the massive accumulation of wealth in the modern era, driven by the consumer internet, globalization, and the finance industry.

He observes a disconnect in Silicon Valley, where highly successful individuals often focus on generating more capital rather than societal improvement. "It really feels unfair and wrong, and we can do better," Ellis states, referencing the 10% of society living in poverty.

Ellis proposes a specific threshold for financial success. He argues that $30 million is sufficient to "win capitalism," allowing for multiple homes, paid education, and a luxurious lifestyle. He believes that once wealth exceeds this amount, it no longer materially improves one's life but instead converts into excessive political power through campaign donations.

Once you get beyond $30 million — and almost no one ever gets there — you get to a point where your life is so good, you really can't materially improve your life anymore.

Ellis supports California's proposed 5% billionaire wealth tax, viewing it as a step in the right direction. However, he believes it does not go far enough and argues that changes must occur at the federal level to be truly effective. He is critical of the narrative that high taxes will cause the wealthy to flee the state, dismissing it as a distraction from more pressing issues like healthcare costs.

He remains confident in California's appeal, citing the talent pool, climate, and amenities that keep companies like Nvidia in the state. Ellis is committed to staying in Silicon Valley, despite his love for his home state of Colorado.

His ultimate proposal is a 50% annual tax on household wealth exceeding $30 million. He argues that this aggressive measure is necessary to curb the influence of excessive wealth on democracy and capitalism.

• Supports federal-level wealth tax reforms
• Advocates for a higher minimum wage
• Seeks a broader distribution of political power
• Rejects the argument that high taxes drive away residents

Scott Ellis represents a growing faction of wealthy individuals calling for systemic economic change. His advocacy is rooted in the belief that a healthy society requires a fair tax system and that the current concentration of wealth is unsustainable. By leveraging his personal success, he aims to shift the conversation from tax avoidance to social responsibility.

As the debate over wealth taxes continues in California and nationally, voices like Ellis's provide a unique perspective from within the economic class being targeted. His stance highlights the complex relationship between personal finance, public policy, and the future of American democracy.