Archive · 2 Jan 2026
Billionaires Flee California Amid Proposed Wealth Tax
California is thinking about a new tax called the 'Billionaire Tax' that would take 5% of the total money and things worth over $1 billion from very rich people living there.
Some billionaires, like Chamath Palihapitiya, say they know others who have left California because of this tax.
They think it might make the state's money problems worse.
The tax needs a lot of signatures to be voted on in November.
If it passes, it would also make people worth $20 billion or more pay a one-time tax of $1 billion.
Some big investment companies have also started moving offices to places like Miami and Austin, which makes people wonder if it's because of the new tax.
California proposes a 5% tax on assets over $1 billion for its 200 billionaires, aiming to raise $100 billion for healthcare.
Chamath Palihapitiya claims $500 billion in net worth fled California before the end of 2025 due to the proposed 'asset seizure tax'.
The tax needs 875,000 signatures to be on the November ballot and would apply retroactively from January 1, 2026.
Investment firms linked to tech titans, like Thiel Capital and Craft Ventures, have leased offices in Miami and Austin, respectively.
California is home to 255 billionaires, with the richest 1% contributing over one-third of the state's tax income.
- Who
- California billionaires, including Chamath Palihapitiya, Larry Page, and Peter Thiel
- What
- Proposed 'Billionaire Tax' targeting ultrawealthy residents
- When
- End of 2025 and retroactively from January 1, 2026
- Where
- California, with potential moves to Miami and Austin
- Why
- To raise revenue for healthcare funding and address budget deficits
- Proposed Tax Rate
- 5% on total assets of residents worth over $1 billion
- Estimated Revenue
- Up to $100 billion
- Number of Billionaires Affected
- Roughly 200
- Signatures Needed for Ballot
- 875,000
- Retroactive Tax Application
- January 1, 2026
- Chamath Palihapitiya's Net Worth
- $1.2 billion
- Estimated Tax Bill for Palihapitiya
- $60 million
- One-Time Tax for $20B+ Net Worth
- $1 billion