Wealth tax floated in California has billionaires thinking of leaving

LOS ANGELES – Billionaires including Peter Thiel, a tech venture capitalist, and Larry Page, a co-founder of Google, are considering cutting or reducing their ties to California by the end of the year because of a proposed ballot measure that could tax the state’s wealthiest residents, according to five people familiar with their thinking.

Thiel, 58, who owns a home in the Hollywood Hills and operates a personal investment firm from Los Angeles, has explored opening an office for that firm, Thiel Capital, in another state, and spending more time outside California, three of the people said.

Other billionaires who appear to be making moves to decrease their presence in California include Page, 52, a longtime resident of Palo Alto. He has discussed leaving the state by the end of the year, according to two people briefed on the talks. In mid-December, three limited liability companies associated with Page filed documents to incorporate in Florida, according to state records.

The moves are being driven by a potential California ballot measure from the health care union, Service Employees International Union-United Healthcare Workers West, the people said. The proposal calls for California residents worth more than $1 billion to be taxed the equivalent of 5% of their assets.

If the measure gains enough signatures to reach the state ballot in November and wins approval, it will retroactively apply to anyone who lived in California as of Jan. 1, 2026. Those with $20 billion in assets who resided in the state on that date would face a one-time tax of $1 billion and have five years to pay it, according to the terms of the measure.

Whether the proposal will reach California’s ballot is far from certain, but some billionaires may be unwilling to take the risk. For Page, whose net worth is estimated at $258 billion, the measure could result in a one-time tax of more than $12 billion. The tax bill for Thiel, whose net worth is around $27.5 billion, could be more than $1.2 billion.

Representatives for Page and Thiel did not respond to requests for comment.

In California, the SEIU-UHW has said the proposed tax measure could raise up to $100 billion from about 200 billionaires. The money could be used to offset federal budget cuts, the union has said.

This article originally appeared in The New York Times.