① In November of this year, a healthcare union in California proposed a wealth tax, requiring California residents with a net worth exceeding $1 billion to pay a one-time tax equivalent to 5% of their assets; ② According to sources, as California prepares to introduce a wealth tax for billionaires, tech giants including Peter Thiel and Larry Page are developing plans to "leave" California.
According to sources, as California prepares to introduce a wealth tax for billionaires, tech giants including Peter Thiel and Larry Page are planning to "leave" California.
In November of this year, a California healthcare union proposed a wealth tax, requiring California residents with a net worth exceeding $1 billion to pay a one-time tax equivalent to 5% of their assets.
This potential wealth tax proposal still needs to gather enough signatures to qualify for a referendum in November 2026.
However, California Governor Gavin Newsom has made it clear that he opposes the proposal.
Sources familiar with the matter revealed that venture capitalist Peter Thiel is considering spending more time outside of California, and his Los Angeles-based personal investment firm, Thiel Capital, plans to open offices in other states.
Meanwhile, Google co-founder Larry Page has also discussed leaving California before the end of this year. It is understood that three limited liability companies associated with him have filed documents to be incorporated in Florida.
According to the Bloomberg Billionaires Index, Page's net worth is $270 billion, while Thiel's is $27.2 billion.
Technology investor Chamath Palihapitiya has warned of the risks of California imposing a wealth tax, saying it could ultimately bankrupt the state.
He posted on social media platform X on Monday: "The inevitable result will be a massive exodus of the state's most talented entrepreneurs, who are able to and will choose to set up companies in states with less regressive tax systems. Ultimately, only the middle class will remain. Subsequently, the tax burden will fall on the middle class because, after the 'richest people' choose to leave, the middle class will be both (a) the only ones left and (b) the largest source of tax revenue for the state government."
It is worth mentioning that Texas Republican Senator Ted Cruz had previously called on Palihapitiya to move to Texas, and the latter responded that the option was "seriously under consideration."
In fact, businesses have already begun relocating from California to areas with lower taxes and less regulation. Elon Musk, the world's richest man, has already relocated two of his star companies , Tesla... And SpaceX moved to Texas.
On the other hand, despite leading artificial intelligence (AI) companies are generally headquartered in California, but new data centers... AI infrastructure is being built outside the state because other states have more abundant land, water, and electricity.
(Article source: CLS)
