Over the past month, the so-called billionaire tax got super real, super fast. That is, if you are a billionaire.
“After blindly funding the Left for years, Silicon Valley is finally realizing what time it is. Dinner time. And they’re on the menu,” said an X post (opens in new tab) by AI and crypto czar David Sacks (who may or may not be a billionaire (opens in new tab)).
The initiative, sponsored by Service Employees International Union-United Healthcare Workers West, seeks to impose a 5% tax on the net worth of California billionaires. It’s no sure thing: Organizers need to gather nearly 900,000 signatures to place the measure on the November ballot; then, it would need to be approved by 50% of California voters. If it’s approved (and overcomes the inevitable legal challenges), the assessment could raise about $100 billion for state-funded healthcare.
The measure would apply to billionaires living in California after Jan. 1, 2026. David Lesperance, a tax and immigration adviser to ultra-wealthy clients, said he helped four billionaires shift away from California in recent months by buying homes mostly in Miami or Texas. And, though the deadline has passed, Lesperance said he’s getting approached by prospective clients.
California residency is determined by more than the location of your house. There are all sorts of rules and conditions the state can use to stipulate residency, making extraction no simple matter. California’s Franchise Tax Board has some of “the most invasive audits that I have seen,” said Laura Zwicker, a Los Angeles-based tax attorney. “They want to see all of the data on all of your devices. Where did you make ATM withdrawals? Where are you charging using Apple Pay? All of those things.”
Because of the difficulty of changing residency, many of Zwicker’s clients have chosen to weather the storm. Some are betting that the initiative simply won’t pass, while others are putting their money into campaigns against it.
While many billionaires love to talk a big game on X, most of California’s richest residents — including Mark Zuckerberg, Marc Benioff, and Eric Schmidt — have stayed mum about where they stand on the tax or if they’ve taken steps to relocate.
There are more than 200 billionaires living in California (more than any other state, according to Forbes). The Standard is tracking who among them has fled, who’s staying put, and who is working to squash the idea.
Here’s our tracker — in alphabetical order — of how some of California’s most prominent billionaire residents have reacted to the proposed tax. (We’ll update as more billionaires weigh in.)
✈️ Sergei Brin (estimated net worth: $253.4 billion). Brin is following his Google cofounder Larry Page out the door. Late last year, an entity connected to Brin terminated or moved 15 California limited liability companies that oversee some of his business interests out of the state; seven were converted into Nevada entities. The companies that moved manage one of Brin’s superyachts and his interest in a private air terminal at San Jose Mineta International Airport, according to The New York Times (opens in new tab).
💸 Larry Ellison (estimated net worth: $242.5 billion). The founder and CTO of Oracle quietly sold his Pacific Heights mansion on Billionaire’s Row for $45 million in an off-market deal last year, which could suggest a pull-back from the Golden State.
👎 Reid Hoffman (estimated net worth: $2.5 billion). When Rep. Ro Khanna contacted the LinkedIn cofounder and Democratic donor to discuss the tax, Hoffman called the proposal “badly designed” and said it would be “horrendous” for innovation. “Poorly designed taxes incentivize avoidance, capital flight, and distortions that ultimately raise less revenue,” Hoffman wrote on X (opens in new tab).
Peter Thiel donated $3 million late last year to a commitee opposing the billionaire tax. | Source: Getty Images for The Cambridge U
😐 Jensen Huang (estimated net worth: $159.1 billion). The Nvidia chief is so far unfazed by the prospect of a $7.75 billion tax bill. “I’ve got to tell you, I have not even thought about it once,” Huang told Bloomberg Television last week (opens in new tab). “We chose to live in Silicon Valley, and whatever taxes they would like to apply, so be it. I’m perfectly fine with it.”
😡 Palmer Luckey (estimated net worth: $3.5 billion). The Anduril cofounder believes the tax would force founders to “sell huge chunks of our companies.” “You are effectively forcing companies to immediately pivot into profit obsession over mission or long-term sustainability,” Luckey wrote on X (opens in new tab).
💥 Michael Moritz (estimated net worth: $7.8 billion). The venture capitalist (and chairman of The Standard) laid out his position this week in a Financial Times op-ed (opens in new tab) titled “California’s billionaire tax plan will backfire.” He argued that California over 50 years has become overly reliant on a few deep pockets that it cannot afford to lose — and the proposal is the latest in a “debilitating series of policies” that have undermined the state’s position as a cradle of progress.
❌ Larry Page (estimated net worth: $274.7 billion). The Google cofounder has officially ditched the Golden State. More than 45 California LLCs associated with Page filed documents last month to become inactive or move out of the state, according to The New York Times. (opens in new tab) A trust with ties to Page purchased a $71.9 million mansion in Miami’s Coconut Grove neighborhood last week.
🌴 Peter Thiel (estimated net worth: $29.4 billion). The venture capitalist and chairman of Palantir donated $3 million to the California Business Roundtable, a committee opposing the Billionaire Tax. Thiel, who has a home and business in Los Angeles, was among an early group of billionaires to make moves to cut ties with California, according to The New York Times (opens in new tab). His family investment firm, Thiel Capital, announced late last year that it was opening an office in Miami, and the form disclosing his seven-figure donation to the anti-tax committee states that he is based in Florida.