Reports indicate that six of California’s 214 billionaires have exited the state in time to evade a proposed 5% wealth tax. While this group is small, they collectively represented $27 billion in potential tax revenue, which is roughly one-fourth of the initiative’s projected $100 billion total.
Panic ensued last November following the announcement of a proposed billionaire tax in California. This measure would impose a one-time 5% levy on the net worth of residents with assets valued at $1 billion or more. Governor Gavin Newsom, a progressive, became the proposal’s chief opponent and promised to block the tax to “protect” the state’s tech sector and general economy.
Prior to the Jan. 1, 2026, deadline outlined in the initiative, Google founders Larry Page and Sergey Brin, along with venture capitalist Peter Thiel, have relocated from California to Miami. Don Hankey, a car loan tycoon and Los Angeles native, moved to Las Vegas. Former Uber CEO Travis Kalanick recently revealed that he left California for Texas in December. According to the Los Angeles Times, director Steven Spielberg became a New York City resident on New Year’s Day, though a representative noted that the Jaws filmmaker had long intended to move to be closer to family.
The count of departing billionaires likely underestimates the true scope of the exodus. Meta CEO Mark Zuckerberg has also reportedly left the state, though not before the Jan. 1 cutoff. Venture capitalist David Sacks, whose net worth is estimated between $250 million and $2 billion, also departed as his company, Craft Ventures, relocated to Austin. Zuckerberg’s departure represents another $10 billion in lost potential tax revenue.
A 5% tax on Larry Page’s $260 billion net worth would yield $13 billion for the state. Sergey Brin’s taxes would be approximately $12 billion. Although Peter Thiel, Travis Kalanick, and Don Hankey are not among the world’s top five richest people, together they would have generated $1.775 billion.
Losing a quarter of the anticipated tax revenue is a significant blow to the initiative, which plans to allocate the funds to healthcare, education, and food assistance.
Billionaires are funding a resistance
Billionaires both within California and beyond are mobilizing to oppose the tax, which is seen as a precursor to broader wealth taxes across the country.
Sergey Brin contributed $20 million to a group named Building a Better California, which is offering $15 to individuals who sign their three counter-proposals. The group’s measures aim to prevent retroactive taxes and tighten the definition of California residency to counter the 2026 Billionaire Tax Act’s reach regarding anyone who lived in the state as of Jan. 1, 2026.
Two political action committees backed by billionaires, Stop the Squeeze and Golden State Promise, have been established to halt the proposal.
Chicago-based venture capitalist Daniel Tierney donated $200,000 to Stop the Squeeze, and crypto billionaire Chris Larsen is supporting Golden State Promise, according to The New York Times.
Following the California initiative’s announcement, other states have proposed higher taxes for their wealthy residents. In January, Rhode Island Governor Dan McKee endorsed a 3% tax increase on millionaires. Last week, Washington state—one of nine states without an income tax—enacted a 9.9% tax on annual personal income over $1 million.
“We’ve got more millionaires and billionaires than we’ve ever had, and they’re paying, effectively, a 4% tax rate,” Rep. Brianna Thomas, a Democrat who supported the measure, previously told . “Meanwhile, you got working folks paying 11% of their income, and the lowest-income people paying 14%. Isn’t it unfair for those who have the most, to pay the least, and those who have the least to pay, the most, proportionally?”