California, long regarded as the land of opportunity for tech titans and entrepreneurs, is now facing a dramatic crossroads. On December 27, 2025, news broke that a proposed wealth tax has some of the state’s most prominent billionaires contemplating a mass exit, according to reporting from StartupNews.fyi, Benzinga, and The New York Times. The measure, if it makes it onto the ballot and wins voter approval, would impose a one-time 5% tax on the assets of residents worth over $1 billion, retroactively applying to those who lived in California as of January 1, 2026. The potential consequences have set off a firestorm of debate, political posturing, and a flurry of activity among the ultra-wealthy.
Hedge fund billionaire Bill Ackman, CEO of Pershing Square Capital Management, didn’t mince words when he weighed in on the situation. In a post on X, Ackman declared California is “on a path to self-destruction,” blaming aggressive tax policies and what he sees as short-sighted political leadership for pushing out the very entrepreneurs who drive jobs and economic growth. “Hollywood has already declined,” Ackman warned, “and the state now risks losing its most productive business leaders.” He also criticized Democrats for continuing to praise Governor Gavin Newsom, calling that stance “crazy” given what he described as California’s deteriorating business climate (Benzinga, December 26, 2025).
The proposed tax is being championed by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), which argues that California’s billionaires are the “most fortunate people in this state,” according to Suzanne Jimenez, the union’s chief of staff. The union estimates the measure could raise up to $100 billion from about 200 billionaires, with funds earmarked to offset federal budget cuts and shore up the state’s healthcare system (The New York Times, December 26, 2025). “We looked at how could we generate the revenue to fix this kind of hole, and this group of folks just made sense,” Jimenez explained.
But the prospect of a 5% asset tax—potentially translating into billions of dollars for the richest Californians—has set off alarm bells among the elite. Tech investor Peter Thiel and Google co-founder Larry Page are reportedly among those considering cutting or reducing their ties to the state. According to five people familiar with their thinking, both men have actively explored options to relocate themselves and their business interests.
Thiel, 58, who owns a home in the Hollywood Hills and operates Thiel Capital from Los Angeles, has explored opening an office for his investment firm in another state and spending more time outside California. Meanwhile, Page, 52, a longtime Palo Alto resident, has discussed leaving California entirely. In mid-December, three limited liability companies associated with Page filed incorporation documents in Florida, a move widely interpreted as a step toward establishing residency there (The New York Times).
The numbers at stake are staggering. For individuals with $20 billion in assets, the proposed tax would mean a one-time bill of $1 billion, payable over five years. But for Page, whose net worth is estimated at $258 billion, the tax could exceed $12 billion. Thiel, with an estimated $27.5 billion, could face a bill north of $1.2 billion. Unsurprisingly, representatives for both declined to comment publicly on their plans.
And it’s not just Thiel and Page. The ripple effects are being felt across Silicon Valley and beyond. Venture capitalist Chamath Palihapitiya took to social media to declare he was giving “serious consideration” to moving to Texas, arguing, “The inevitable outcome will be an exodus of the state’s most talented entrepreneurs who can and will choose to build their companies in less regressive states.”
California’s Legislative Analyst’s Office and Department of Finance estimate that the state would collect “tens of billions of dollars from the wealth tax” in one-time payments. However, they also warn that income tax revenues could fall by hundreds of millions of dollars a year if billionaires decide to leave. Tax and immigration advisers, such as David Lesperance, say that “almost all of my clients are taking steps as quickly as possible both to sever California residence and to move assets outside of the state.” But it’s not as simple as packing up and leaving. California’s tax agency is notorious for its aggressive pursuit of revenue, considering factors like principal residence, voter registration, driver’s license information, and the location of banks, investments, and family members to determine residency.
The exodus isn’t just theoretical. High-end Miami real estate agent Brett Harris told The New York Times he’d recently been contacted by five California billionaires looking to make Florida their home to “offset their risk of exposure to the billionaire tax.” He added that if the measure doesn’t pass, some may even move back.
The political battle lines are clearly drawn. Governor Gavin Newsom, a Democrat and longtime ally of Silicon Valley, has come out in opposition to the wealth tax, calling it “not pragmatic” at The New York Times DealBook conference. Newsom is actively raising money to fight the measure, with venture capitalist Ron Conway donating $100,000 to the cause in November 2025. A spokesperson for Newsom reiterated his opposition, warning that state-level wealth taxes encourage the very people California relies on for innovation and economic growth to move elsewhere.
Meanwhile, the wealth tax debate is playing out against the backdrop of a widening income divide. Congressional Budget Office data shows that, as of 2022, families in the top 10 percent held 69 percent of the nation’s wealth, while the bottom half held just 3 percent. The SEIU-UHW frames its proposal as a way to address this growing inequality, but critics argue it could backfire, driving away the very people and companies that have fueled California’s economic engine for decades.
In the midst of all this, Peter Thiel has already made significant moves: he established residency in Miami, registered to vote in Florida, and even obtained New Zealand citizenship and explored Maltese citizenship. In December 2025, Thiel hosted a Christmas party at his Hollywood Hills mansion themed around British taxation history—a not-so-subtle nod to the American Revolution’s roots in tax rebellion—where guests reportedly discussed the implications of the proposed wealth tax.
Larry Page, for his part, has kept a low profile since stepping down from his day-to-day role at Alphabet in 2019, focusing on overseas projects and artificial intelligence. According to sources, Page’s family office head, Wayne Osborne, has been spending time in Miami, and Page himself is said to be looking for a new home base.
As the debate rages, one thing is clear: California’s relationship with its wealthiest residents has entered uncharted territory. Whether the proposed tax becomes law or not, the mere possibility has already set in motion a series of moves and countermoves that could reshape the state’s economic landscape for years to come.
