Tech billionaires Peter Thiel and Google co-founder Larry Page are reportedly preparing to cut ties with California before the clock strikes midnight on New Year’s Eve, driven by fears of a proposed ballot measure that would impose a one-time 5% tax on residents worth more than $1 billion. he venture capitalist and Google co-founder have called the Golden State home for years, but sources familiar with their thinking say both are exploring exit strategies as the wealth tax proposal gains momentum—even though it hasn’t yet qualified for the November 2026 ballot.Sources told the New York Times that Thiel, who owns a Hollywood Hills mansion and runs his personal investment firm Thiel Capital from Los Angeles, has been scouting locations for a new office in another state while planning to spend more time outside California. Page, a longtime Palo Alto resident, has discussed leaving by year’s end, with three limited liability companies linked to him recently filing incorporation documents in Florida. If the measure passes and applies retroactively to anyone living in California on January 1, 2026, Page could face a tax bill exceeding $12 billion on his estimated $258 billion net worth, while Thiel would owe more than $1.2 billion on his $27.5 billion fortune.
The tax that’s got billionaires running for the exit
The wealth tax proposal, pushed by healthcare union SEIU-United Healthcare Workers West, would retroactively apply to anyone living in California on January 1, 2026. That means billionaires have just hours to establish residency elsewhere if they want to avoid it. For Page, whose net worth stands at roughly $258 billion, the tax bill could exceed $12 billion. Thiel, worth about $27.5 billion, would face a tab of more than $1.2 billion.The measure needs enough signatures to reach the November 2026 ballot, but some wealthy Californians aren’t willing to gamble. Tech investor Chamath Palihapitiya warned the tax would trigger “an exodus of the state’s most talented entrepreneurs,” adding he’s giving “serious consideration” to moving to Texas.
A battle over who built Silicon Valley
Democratic Rep. Ro Khanna, who represents Silicon Valley, dismissed the billionaire flight threats with sarcasm, echoing FDR’s response to wealthy industrialists during the New Deal: “I will miss them very much.” Khanna argued that public funding—not just entrepreneurial genius—built the tech industry, and that a modest wealth tax won’t stop innovation.But tech founders aren’t buying it. Palmer Luckey, co-founder of defense tech startup Anduril, warned the tax could force founders to sell company stakes or face wage garnishment. “One market correction and I’m screwed for life,” he wrote.California Gov. Gavin Newsom has come out against the measure, warning it’ll drive wealthy residents to lower-tax states like Texas and Florida.
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