Known as the “2026 Billionaire Tax Act,” the initiative proposes a one-time 5% wealth tax on California’s billionaires, payable over five years. 90% of the tax revenue would be used to offset the $100 billion (€85.7 billion) in budget cuts imposed by the “One Big Beautiful Bill,” the budget law that the United States Congress passed in July 2025, under the auspices of President Donald Trump. The remaining 10% would go to food assistance programs and public education, which is in a curiously dire situation for such a wealthy state.
The ballot initiative is still just a proposal: It has not yet received the 874,000 signatures required for it to be put to a vote by Californians in November, and the state’s Democratic governor, Gavin Newsom, does not support it. Nevertheless, the initiative has threatened to drive the Silicon Valley billionaires out of the state.
The initiative has resulted in panic among the billionaires. According to the press, the biggest names in Silicon Valley all took steps to move before December 31, 2025, to minimize their exposure to the tax, which would be calculated retroactively, back to January 1. Larry Page (with a net worth of $276 billion), one of Google’s founders, had his holding company move its headquarters to the tax-friendly East Coast state of Delaware, relocate three of its companies to Florida and purchased two homes in Miami, for $173 million. Larry Ellison (net worth $245 billion), cofounder of Oracle, sold his $45 million home in the hills above San Francisco, though he had already moved his tax residence to Hawaii in 2020, just like Elon Musk (head of the social media platform X and Tesla), who relocated to Texas. Meanwhile, Peter Thiel, cofounder of PayPal and Palantir Technologies, who is worth $26 billion, has increased his presence in Florida.
Newsom is such a fucking weirdo. Seems progressive right up until it involves helping the hungry, homeless, or trans folk. Not to mention how the fucker just looks like the rich dude who comes into the small town to buy up land and develop some gaudy hotel or theme park by bulldozing the rec center and old folks home in an 80s movie.
Good fucking riddance, tbh
I remember years ago when i first heard of Newsome i thought he seemed decent. The fact he’s against this bill is further evidence that i was mistaken.
Just remember that newsom is the epitome of the neoliberal. He is perfectly willing to throw any supposed principles under the bus to gather support and votes. Just look up his publicly made remarks on gender dysphoric folks, his vetoes, and his bootlicking of billionaires.
Larry Page (with a net worth of $276 billion), one of Google’s founders, had his holding company move its headquarters to the tax-friendly East Coast state of Delaware, relocate three of its companies to Florida and purchased two homes in Miami, for $173 million. Larry Ellison (net worth $245 billion), cofounder of Oracle, sold his $45 million home in the hills above San Francisco, though he had already moved his tax residence to Hawaii in 2020, just like Elon Musk (head of the social media platform X and Tesla), who relocated to Texas. Meanwhile, Peter Thiel, cofounder of PayPal and Palantir Technologies, who is worth $26 billion, has increased his presence in Florida.
So your headline is a lie?
One billionaire did some paperwork. He didn’t even leave, he literally just moved some assets around on paper.
I hope there’s a stipulation that if you ever come back, the same amount is due as a lump sum.
I don’t know, if I had the money to buy two Miami homes, entirely move three operating businesses and relocate a company’s headquarters, I wouldn’t be worrying about losing 1/20th of my income over 5 years. Which really costs more? It’s almost as if they’re doing this out of spite instead of saving money.
The article is making some very broad assumptions by treating any of these moves as being directly connected to the proposed tax. Wealthy people do shit like this all the time.
,You let one ant stand up to us, then they all might stand up."
It’s not about the money, it’s about sending a message…
They’re not going to move.
Billionaires always threaten this, thinking their bluff would work. It’s pure scare tactics.
Not income, wealth.
Are they actually talking about relocating businesses, rather than just their homes?
I mean, I really don’t see the problem here. So they move somewhere else. That costs money. And generally you’re hiring lower class workers. So… There’s still money being transferred down.
They weren’t paying taxes before so what difference does it make
I have the same question: If they refuse to contribute to their community and/or to the absolute legal minimum they can’t find a loophole for… what’s the point of wanting to make them stay?
All that lost revenue for escorts and coke dealers?
Thieves running away in the middle of the night.
Ballot measure that is literally just still a proposal at this point. Jesus, the titles are so dumb. Show me all the Billionaires leaving New York after Mamdani won. Oh, right, they didn’t.
California Dems are such shitheads that even if this was voted for Newsom would just veto the will of the people again.
Agreed. Fuck Newsome, who will likely be the Dem candidate in 2028 (in the off-chance that we still have elections)
Sounds like California gave these billionaires financial incentive to leave.
Maybe that will solve the high cost of living issues there
It won’t unfortunately.
The issue as far as I’ve seen hasn’t been billionaires owning multi-million dollar houses, but more different parties buying houses and sitting on them for investing.
And a very large amount of nimbyism and zoning for residential areas. Capitalism has so many ways to attack the common man’s wallet.
No, they do not.
