In late December, a cryptic social media post from White House advisor and technology investor David Sacks revealed a movement gaining momentum among America's wealthiest individuals. The message, which displayed protesters outside his San Francisco home, publicly acknowledged what had been privately discussed for weeks: a coordinated departure from California in response to a controversial wealth tax proposal.
The legislation, introduced in November, would impose a one-time 5% tax on the assets of California residents worth over $1 billion. Since its announcement, the measure has dominated conversations in exclusive digital forums and high-society holiday events throughout Silicon Valley.
The proposal has created unprecedented concern among technology entrepreneurs who built their fortunes in California. The anxiety stems from a fundamental reality: virtually every founder arriving in Silicon Valley dreams of creating a billion-dollar company. The prospect of a massive tax on that success has dramatically shifted the equation of staying in the state.
The wealth tax initiative, advanced by the Service Employees International Union-United Healthcare Workers West, seeks to generate revenue to offset federal cuts to social programs. To qualify for the November ballot, supporters must collect 875,000 valid signatures. A particularly contentious provision would apply the tax retroactively to anyone residing in California on January 1, 2026—a clause that tax attorneys universally expect to trigger immediate litigation.
The billionaire community's reaction has been rapid and resolute. Several influential figures have already launched relocation efforts, targeting states with more favorable fiscal policies.
David Sacks, who previously served in the Trump administration, has confirmed his relocation to Austin, Texas, where he's establishing a new branch of his venture capital firm, Craft Ventures. Peter Thiel, the billionaire co-founder of PayPal and Palantir, has moved his family office, Thiel Capital, to Miami, Florida—a state renowned for its lack of personal income tax.
The migration extends beyond individual investors. Google co-founders Larry Page and Sergey Brin have quietly restructured their business interests, transferring certain controlled entities to jurisdictions outside California. While neither has issued public statements, sources close to their operations indicate the wealth tax proposal significantly influenced these decisions.
Tax advisors report a dramatic increase in client consultations since the proposal's details became public. David Lesperance, a leading tax attorney for ultra-high-net-worth individuals, disclosed that four of his clients—with a combined net worth of $600 billion—have activated relocation plans. Three are relocating to Florida, while the fourth has selected Texas. According to Lesperance, financial analysis left no room for doubt: after modeling the tax impact, each client immediately concluded that exit was the only logical choice.
"This is now a no-brainer," Lesperance remarked, describing the unanimous verdict among his clientele following their post-Thanksgiving financial reviews.
This exodus represents more than simple tax mitigation. It signals a potential transformation of America's technological map. For generations, California has stood as the world's innovation capital, attracting talent and capital through its unique combination of venture funding, elite universities, and entrepreneurial culture. Yet the state's high taxes, strict regulations, and progressive political climate have increasingly conflicted with the libertarian-leaning philosophy common among tech leaders.
While wealthy individuals have long threatened to abandon California, complaining about its tax burden, the current situation differs markedly in urgency and scope. The proposal's specificity, particularly its retroactive element, has converted theoretical grievances into concrete action plans.
The chosen destinations—Texas and Florida—offer advantages beyond tax savings. Both states have actively fostered tech-friendly climates, with Austin and Miami investing substantially in infrastructure and incentives to attract companies and skilled workers. Miami's mayor has personally wooed Silicon Valley leaders, while Austin has evolved into a major tech hub, hosting major offices for Apple, Tesla, and numerous startups.
Critics warn that the departure of billionaires could damage California's economy by diminishing tax revenue and charitable giving. Supporters of the wealth tax, however, argue that the ultra-wealthy have gained disproportionately from the state's resources and should contribute more to public services.
The dispute raises fundamental questions about equity, economic mobility, and government's role in addressing inequality. Advocates view the tax as essential for funding critical services and narrowing the wealth gap. Detractors consider it punitive and self-defeating, potentially expelling the very individuals who generate employment and innovation.
Legal scholars predict that if voters approve the measure, it will face instant court challenges, especially concerning its retroactive application. The California Constitution provides protections against certain retroactive taxes, and opponents will likely argue the wealth tax violates these safeguards.
Meanwhile, the tech exodus accelerates. Tax professionals report that initial inquiries have swelled into a torrent, with wealthy individuals scrambling to establish residency elsewhere before the January 2026 deadline. The process involves more than purchasing property in a new state—it requires proving genuine intent to make that location a permanent home, including updating voter registration, obtaining new driver's licenses, and spending the majority of the year outside California.
The consequences extend beyond the individuals themselves. If sufficient wealth and talent relocates, California may struggle to preserve its competitive advantage in technology and innovation. The state has historically thrived on network effects, where capital, talent, and ideas concentrate to create a self-reinforcing innovation cycle. Significant dispersion could weaken that dynamic.
Simultaneously, the migration could spur the growth of new tech centers nationwide. As billionaires transfer their capital and connections to Miami and Austin, they may plant seeds for the next wave of startups in those cities, fostering competing ecosystems that challenge California's supremacy.
The next few months will prove decisive. Signature collection for the ballot measure continues, and polling will reveal whether the proposal enjoys adequate support among California voters. Meanwhile, the clock ticks toward January 2026, creating urgency for those contemplating relocation.
What started as whispers in exclusive circles has become a public phenomenon, with billionaires voting through relocation. Whether this marks a temporary adjustment or a permanent realignment of America's tech landscape remains uncertain. For now, the message from Silicon Valley's wealthiest is unmistakable: California's proposed wealth tax has fundamentally altered their relationship with the state that helped make them famous.