Taking money away from billionaires is funny, and threatening to do it can be a nice political sugar rush for anyone with even a tiny amount of class consciousness (even though it would not get close to creating “socialism” in America according to socialists like Doug Henwood). The state of California is now very much threatening to do it, and the predictable result is happening according to the New York Times: tech billionaires like Peter Thiel and ex-Google CEO and co-founder Larry Page are having their obligatory tantrum and threatening to leave.
The political instrument involved here is not a technocratic and nuanced change to the tax code that happens to tax billionaires, but instead a one-off, 5% billionaire tax. This comes in the form of a proposed ballot measure backed by organized labor—specifically the Service Employees International Union–United Healthcare Workers West.
Anyone who lives in California as of January 1, 2026 would be subject to the proposed tax, and the math works like this: If you have $20 billion in assets, you owe $1 billion, and have five years to pay up. Estimates from the union say the state would pull in about $100 billion, basically by legally mugging the 200 most obnoxious people in the state.
If you’ve followed the similar drama in New York City during the rise of Zohran Mamdani, you already know this next part by heart. According to the Times, Peter Thiel is now weighing an out-of-state office for Thiel Capital, and figuring out how to spend less time in California. Larry Page, listed by Forbes as the second richest person in the world as of this writing, has begun moving three LLCs to Florida, the Times says.
David Lesperance, a tax advisor for billionaires, told the Times, “almost all of my clients are taking steps as quickly as possible both to sever California residence and to move assets outside of the state.”
Billionaire tech and healthcare investor Chamath Palihapitiya also played the hits, with the following X post quoted by the Times: “The inevitable outcome will be an exodus of the state’s most talented entrepreneurs who can and will choose to build their companies in less regressive states.” The post the Times is quoting here doesn’t seem to exist anymore, perhaps because of Palihapitiya’s bizarre, Opposite Day use of the term “regressive.”
Palihapitiya’s X activity shows that he’s been on a tear with this topic for days, however:
This idiotic attack, by an inept California politician, on a productive California resident caused him to leave. It should not be lost on anyone that this has already cost California $10’s of billions in lost taxes from Elon and the plethora of well paid employees that followed… pic.twitter.com/2aADLB4WWH
— Chamath Palihapitiya (@chamath) December 25, 2025
But do the American rich actually flee a state that has decided to tax them? Maybe, but it doesn’t seem like it so far. The state of Massachusetts passed something a little different: a more widespread income surtax for people making more than $1 million, and after two years, more tax-eligible millionaires are reportedly in the state, not less.
So yes, Billionaires, we know that if this ends up on the ballot and actually gets voted into law, most of you are going to characterize Californians with less money than you as ungrateful and naive children, and some of you will even make good on your threat to leave. The question would be this: will a fun state with great weather that also happens to manufacture new billionaires all the time actually regret making you cough up some of your money in the long run? Who knows, but I kinda doubt it.
