California billionaires are feeling taxed about a new proposal

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No more California dreaming

California's billionaires are at a crossroads.

One of the biggest business stories kicking off the year is the proposed wealth tax in California. The state's rich and powerful, worth more than $1 billion, would face a one-time 5% tax on their assets if the plan gets approved.

The proposal, which aims to address a projected multibillion-dollar state budget deficit, has prompted plenty of grumbling among the California elite.

As Business Insider first reported, some have already taken action, including Google cofounders Larry Page and Sergey Brin.

Page converted his secretive family office out of California in late December and incorporated it in Delaware, according to my colleague Hugh Langley's exclusive reporting. Page also recently incorporated other entities in Delaware, including a vehicle used to fund influenza research and another used for his flying car ventures. He lists principal office addresses outside of California for those entities.

Separately, an entity tied to both Brin and Page moved out of California at the end of 2025.

The timing of these moves is crucial. If the ballot measure is approved in November, it would take effect retroactively for residents living in California as of January 1, 2026. Hence, the rush to move assets before the end of the year.

Brin and Page are two of the richest people on the planet, with a combined net worth north of half a trillion dollars, according to the Bloomberg Billionaires Index.

Nvidia CEO Jensen Huang struck a very different tone. He said he's "perfectly fine" with the tax and gave no indication he plans to leave Silicon Valley, even if it costs him.

Others are more pessimistic. LinkedIn cofounder Reid Hoffman called the proposal "horrendous" for innovation, warning that poorly designed wealth taxes don't raise reliable revenue — they push money and talent elsewhere.

Alex Spiro, the celebrity lawyer who represents several billionaires, sent a letter to Gov. Gavin Newsom last month warning that the tax would drive capital and innovation out of California.

Earlier this month, White House AI Czar David Sacks predicted Austin would overtake San Francisco as the American tech hub. His social media post ricocheted throughout tech and venture circles, drawing cheers from anti-coastal contrarians and sharp pushback from traditionalists.

Where do you stand on the proposed billionaire's tax in California? Let me know what you think at srussolillo@businessinsider.com.