A quiet exodus is underway in California, and it’s not just celebrities seeking sunshine. A growing number of the world’s wealthiest individuals – including tech titans like Google’s Larry Page and Oracle’s Larry Ellison – are quietly dismantling their California presence, and one insider warns this is just the beginning.
Allison Huynh, a Silicon Valley entrepreneur and former fundraiser for Presidents Obama and Biden, believes two proposed tax policies are accelerating this “mass migration.” These aren’t simply adjustments to the tax code; she describes them as potentially devastating blows to California’s economic engine.
The first is an annual wealth tax, targeting assets exceeding $50 million with a rate of one to 1.5 percent. Huynh clarifies this isn’t based on liquid cash, but on the *total* assessed value of holdings – artwork, inherited property, everything. Even a modest cash reserve would be taxed against the entire portfolio.
Adding to the pressure is the 2026 Billionaire Tax Act, a one-time, five percent levy on fortunes exceeding $1 billion. The catch? It applies to the *entire* valuation, even if the vast majority of those assets are tied up in running a business. A founder with $100 billion in company value but only $2 million in readily available funds would face a $5 billion tax bill.
Huynh argues these proposals are less about revenue generation and more about political maneuvering – “rage bait” designed to energize voters. She likens it to a failing restaurant inexplicably raising prices, driving away customers instead of attracting them.
Recent filings reveal Page has already begun relocating key business entities, including his family office and a research fund, out of state, strategically positioning them before the 2026 tax takes effect. His flying-car venture, One Aero, now lists Florida as its primary address.
Ellison’s potential move is signaled by a reported $45 million off-market sale of his San Francisco home, a transaction that would represent the city’s largest real estate deal of the year. While unconfirmed, the move speaks volumes.
Huynh says the reaction among her network is palpable. Friends and family are rapidly selling California properties, scouting locations in Florida, Texas, and even Puerto Rico. These aren’t just passive investors; they are the founders and innovators fueling California’s growth.
The concern isn’t simply about the billionaires themselves, but the ripple effect. Huynh fears these individuals will take their companies – and the countless jobs they create – with them, mirroring the departures of SpaceX and Oracle to states with more favorable business climates.
“We can’t sanction these billionaires to be in the California jurisdiction,” Huynh stated, her frustration evident. “Why are we forcing legislation that will drive away the investors in California businesses, and likely their businesses with them? This is a very, very dangerous move.”
The proposed annual wealth tax isn’t currently slated for the November ballot, but proponents are actively gathering signatures to put it before voters. Regardless, the damage may already be done, as many are choosing not to wait and see how the political landscape unfolds.
