California billionaires flee state’s wealth tax in the most-predictable result ever |
Allison Hyunh, managing partner at Alo Ventures and a former Obama and Biden fundraiser, predicted California will see a "mass migration" with catastrophic consequences if two proposed tax policies pass.
It’s a political earthquake. The wealthiest Californians are fleeing the state and taking their capital, resources and companies with them.
The SEIU United Healthcare Workers West, a statewide union of service employees in California, introduced a ballot measure called the Billionaire Tax Act, to implement a one-time 5% tax on the net worth over $1 billion on any California resident. The tax is on total net worth, not income, and would snag rich people who have the bulk of their wealth in stock or property.
The idea has yet to be voted on, and supporters of the measure will need nearly a million signatures by late June to get it on the ballot for November 2026.
But wealthy Californians are already running for the door because the language in the draft of the measure sets the tax retroactively to January 1, 2026, and they know they can’t rely on their fellow Californians to vote down the absurd proposal.
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Google co-founder Larry Page and Oracle founder Larry Ellison have become some of the latest high-profile California business leaders to divest from the state. (Eric Risberg/AP Photo; AP)
Suzanne Jimenez, a chief of staff for SEIU-UHW who introduced the measure, calls it "a very minor tax."
Larry Page and Sergey Brin, co-founders of Google, are the latest to bail on California. Garry Tan, president and CEO of Y Combinator and self-described "San Francisco Democrat" explained on X that the wealth tax wouldn’t actually end up being "5%" of a........