Silicon Valley Billionaires Panic Over California’s Proposed Wealth Tax

Los Angeles: Did California lose Larry Page? The Google cofounder left his daily job in 2019. Since then, his wealth grew from about $50 billion to around $260 billion. A new tax plan in California targets billionaires, like Page, with a one-time 5 percent wealth tax. This tax could start if approved by voters after getting 875,000 signatures. Page seems worried; he spent over $170 million on two homes in Miami. His cofounder, Sergey Brin, might also leave California.

Many billionaires, around 250, worry about this tax. Rich people are speaking out. Bill Ackman calls it “catastrophic.” Elon Musk, the world’s richest man, claims he pays enough taxes already. If Musk had to pay the 5 percent wealth tax, he’d still have about $680 billion left. That’s enough to buy several major car companies. He moved to Texas a few years ago, so he won’t pay this California tax.

California Governor Gavin Newsom and most leaders oppose this tax plan. But Representative Ro Khanna supports a wealth tax to help reduce inequality and improve healthcare. This could be risky for Khanna, as wealthy people might challenge him politically.

San Jose mayor Matt Mahan tweeted against the tax, saying it could hurt California’s economy. He believes that taxing billionaires could hurt jobs and innovation. Mahan emphasizes that wealthy people could leave California, which is concerning. Many find it strange that people would move just to escape a tax when they love their homes.

An exit of billionaires doesn’t mean the end of Silicon Valley as a tech haven. The Bay Area still offers a great place for new businesses. In the past, some tech leaders tried moving to Miami but were not successful in making it the next Silicon Valley.