Billionaires Are Exiting California Ahead of a Possible New Wealth Tax
10th January 2026
Billionaires are fleeing California ahead of a proposed 5 percent wealth tax, with at least six members of the ten-digit club moving their business to other states before the bill’s January 1 deadline to be considered for the levy. And more may be on the move still, if the tax actually comes to pass, Bloomberg reported.
Well, that will free up a lot of high-end housing. (Won’t help the homeless much, but proglodyte celebrities ought to benefit.)
And though the proposal hasn’t been signed into law, the idea alone was strong enough to send some UHNW individuals out of the state. Both Peter Thiel and David Sacks packed their bags right at the end of 2025, with the PayPal cofounder heading to Florida and the venture capitalist going off to Texas. Global investment firm Iconiq Capital’s founder Divesh Makan says he’s aware of four or five families that left California, explaining that the floodgates would open even further if the bill was passed, according to Bloomberg. David Lesperance, whose company helps affluent families with immigration and taxes, has helped move four billionaires out of the state, he told the publication.
The bill itself calls for a one-time tax on California residents who have over $1 billion to their name. Though it’s not a sure thing by any means, with the move still needing enough signatures to even appear on the state’s November ballot; then, of course, it would need to be voted into law. Governor Gavin Newsom is strongly opposed to the measure; other detractors say it would harm the California’s tech economy, as many start-ups may not have the funds to cover the levy. And, since the state’s economy overall relies heavily on existing taxes on the uber-rich, the bill may actually end up costing California money in the long term if these UHNW individuals happen to exit. The union that introduced the proposal aimed to generate $100 billion to fund gaps in health care, food benefits, and education statewide.