Tech billionaires threaten to exit California over proposed wealth tax

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PALO ALTO, Calif. - Several of the tech industry’s wealthiest figures are threatening to flee California over a proposed wealth tax that would target their personal assets.

According to The New York Times, Google co-founder Larry Page and venture capitalist Peter Thiel have signaled they will leave the state if voters approve the measure.

While the initiative has not yet qualified for the November 2026 ballot, some question whether it could shift the landscape of innovation and

Silicon Valley.

The cost of staying in California

What we know:

The proposal, backed by the Service Employees International Union–United Healthcare Workers West, would impose a one-time 5% tax on the assets of California residents worth more than $1 billion.

Supporters say the revenue would help offset federal funding cuts for healthcare.

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The financial impact would vary. For Page, he would face a $12 billion one-time tax bill, and Thiel a $1.2 billion tax bill.

Sources told the Times that Thiel, who owns a home in the Hollywood Hills, is already scouting office locations for his investment firm outside of California. Meanwhile, Page has reportedly discussed leaving by year's end and has filed documents to incorporate three of his businesses in Florida.

Founders warn of economic fallout

What they're saying:

Palmer Luckey, co-founder of defense tech startup Anduril, argued the tax would force entrepreneurs to liquidate their holdings.

"I made my money from my first company, paid hundreds of millions of dollars in taxes on it, used the remainder to start a second company that employs six thousand people and now me and my cofounders have to somehow come up with billions of dollars in cash," Luckey wrote on X.

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He claimed the tax would force founders to sell "huge chunks" of their companies to pay for what he described as "fraud, waste and political favors."

Billionaire investor Bill Ackman, CEO of Pershing Square, echoed these sentiments, stating California is on a "path to self-destruction."

Ackman warned that the state’s most productive entrepreneurs would take their tax revenue and job creation elsewhere.

Newsom opposes wealth tax proposal

If the measure qualifies for the November ballot and passes, it would apply retroactively to anyone residing in California as of Jan. 1, 2026.

Gov. Gavin Newsom voiced his opposition to the wealth tax. Speaking at The New York Times DealBook conference, Newsom cautioned against panic while acknowledging the underlying tensions.

"It's not something to be panicked about, but it's part of the broader concern and narrative that's developed in this country of the haves and have-nots, not just income inequality, but wealth inequality," Newsom told the audience.