Elon Musk Podcast Billionaires are following Elon Musk out of California
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Dec 30, 2025 A bold new tax proposal in California threatens billionaires with a one-time 5% wealth tax, sparking a potential exodus of tech moguls like Larry Page and Peter Thiel. The residency cutoff date looms, prompting swift action from those worried about losing their fortunes. Critics argue that such moves could hurt the state's economy, reducing job growth and tax revenue. Concerns about being taxed on unrealized gains linger, while political debates heat up over the fairness and logistics of the plan.
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Retroactive Cutoff Drives Immediate Exodus
- California's proposed Billionaire Tax would levy a one-time 5% tax on net worth above $1B assessed Dec 31, 2026.
- The residency cutoff of Jan 1, 2026 makes the tax effectively retroactive and is driving immediate moves out of state.
Small Group, Big Revenue Potential
- The initiative targets roughly 200–250 billionaires and could raise about $100 billion if passed.
- Governor Newsom and other leaders oppose it, raising political and legal battles ahead.
Page And Thiel Signal Moves
- Larry Page filed LLC documents in Florida and Peter Thiel has explored moving his investment firm out of California.
- Both moves are cited as reactions to the proposed wealth tax and its residency rule.