California's Proposed Billionaire Tax Sparks Mass Tech Exodus
Several prominent tech executives are departing California following the state legislature's push for a proposed 5% tax on the ultra-wealthy. Critics warn this move could significantly accelerate the departure of billionaires and top entrepreneurs from the Golden State, potentially undermining its economic foundation.
The Billionaire Tax Proposal Explained
Under the tax proposal, which may be presented to voters this November, any California resident with a net worth exceeding $1 billion would be required to pay a one-time, 5% levy on their total assets. The generated revenue is earmarked for state education programs, food assistance initiatives, and healthcare services.
While many wealthy individuals have already relocated from California, others have threatened to follow suit, taking their businesses to states with more favorable tax environments. However, some executives remain committed to Silicon Valley, citing its unparalleled status as the world's premier technology hub, attracting investors and skilled workers globally.
Tech Titans Leading the Exodus
With a contentious battle brewing over the billionaire tax plan, here is a detailed list of technology leaders who have either already relocated or are reportedly planning to leave California with their families.
- Mark Zuckerberg: The Meta CEO is the latest California billionaire making a high-profile move to Florida. According to a Guardian report, Zuckerberg purchased a substantial waterfront mansion in Miami's exclusive "Billionaire Bunker" neighborhood. He and his wife, Priscilla Chan, plan to complete their relocation by April.
- Larry Page: While the Google co-founder has not publicly disclosed his destination, the New York Times reported that companies associated with Page filed incorporation documents in Florida in December. He reportedly acquired two Miami properties for $173.4 million in December and January.
- Sergey Brin: The other Google co-founder is also reportedly exiting California. Although Brin has not officially announced his departure, records indicate that in mid-December, an entity linked to the billionaire either dissolved or transferred over a dozen limited liability companies out of the state, with several moving to Nevada, as per the New York Times.
- Larry Ellison: The Oracle founder appears to be joining the billionaire exodus. Reports of a $45 million off-market sale of his San Francisco home, which would be the city's largest real estate transaction of 2025, suggest he may be reducing his California footprint, though these claims await independent verification by news outlets.
- Peter Thiel: The venture capitalist and PayPal co-founder has explored spending more time outside California and establishing an office for his Los Angeles-based personal investment firm, Thiel Capital, in another state, hinting at a potential departure, according to a New York Times report.
- David Sacks: The White House AI and crypto czar confirmed his relocation to Texas via an X (formerly Twitter) post. Sacks wrote, "I'm pleased to end the year by announcing that Craft Ventures has opened an Austin office. God bless Texas and happy new year!"
Background and Political Implications
The tax proposal is being championed by the labor union Service Employees International Union-United Healthcare Workers West. If approved, the tax would apply retroactively from January 1, with billionaires granted a five-year window to fulfill their payment obligations, as reported by the Guardian.
California has historically depended on its substantial billionaire population, one of the largest in the United States, to help finance the state's budget. Critics of the tax proposal, including venture capitalist Chamath Palihapitiya, argue that this measure could exacerbate the state's financial challenges rather than alleviate its budget deficit.
Meanwhile, California Governor Gavin Newsom has firmly stated his opposition to the wealth tax, vowing to "fight" it if it advances. Newsom has consistently opposed state-level wealth taxes, believing that "if implemented at a state-only level, they drive a race to the bottom," according to news reports.
