> At a Glance
> – Google co-founder Larry Page spent $170 million on two Miami homes
> – California’s proposed 5% wealth tax could hit 250 billionaires retroactively
> – Sergey Brin may also exit; Elon Musk already left for Texas
> – Why it matters: Ballot initiative could reshape who stays in Silicon Valley
Google co-founder Larry Page-worth $260 billion-appears to have joined the exodus from California after the state floated a one-time 5% wealth tax on billionaires. The Wall Street Journal reports Page recently dropped $170 million on adjacent Miami mansions, while fellow Google founder Sergey Brin is rumored to be eyeing Florida too.
The Tax That Sparked a Billionaire Exodus
The ballot measure needs 875,000 signatures to reach November voters. If passed, it would slap a retroactive levy on net worth, prompting some of the state’s richest residents to relocate before year-end.
- 250 billionaires would be affected statewide
- Hedge-fund billionaire Bill Ackman calls the plan “catastrophic”
- Elon Musk, now based in Texas, boasts he once “broke the IRS computer” with his tax bill
Political Fallout in Sacramento
Governor Gavin Newsom opposes the initiative, but Representative Ro Khanna supports a “modest wealth tax” to fund healthcare and fight inequality. San Jose Mayor Matt Mahan warns the state risks “cutting off its nose to spite its face” by targeting mobile billionaires.
> Mayor Matt Mahan: “It puts at risk our innovation economy that is the real engine of economic growth.”
National Alternatives and Loopholes
Senator Elizabeth Warren’s federal “Ultra-Millionaire Tax Act” would levy 2% on wealth above $50 million and 3% above $1 billion-yet Congress shows little appetite for such measures. Meanwhile, loopholes like the carried-interest provision persist despite bipartisan criticism.
| Proposal | Rate | Threshold | Status |
|---|---|---|---|
| CA Ballot | 5% one-time | $1B net worth | Needs 875k signatures |
| Warren Bill | 2% + 1% | $50M/$1B | Stalled in Congress |
Key Takeaways
- Larry Page joins a potential billionaire stampede out of California
- The 5% wealth tax faces fierce opposition from tech elites
- Ro Khanna stands nearly alone among prominent CA politicians backing the plan
- Critics argue a national wealth tax would be fairer and harder to dodge
- Silicon Valley’s talent pool may keep innovation anchored even if billionaires flee
Whether the ballot measure passes or not, the debate has exposed deep tensions over how-or whether-to tax mega-fortunes in America’s most innovative state.
