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California Billionaire Tax Drive Spurs Tech Titans to Reconsider Ties

The labor-backed proposal would levy a one-time 5% charge on residents worth over $1 billion retroactive to Jan. 1, 2026.

Overview

  • The initiative, backed by SEIUUHW, is in the signature-gathering phase and must collect just over 870,000 signatures to reach the ballot.
  • The New York Times reported that Peter Thiel is exploring an out-of-state office for Thiel Capital and plans to spend less time in California.
  • The Times also reported that Larry Page has begun moving three LLCs to Florida and has discussed leaving the state.
  • Public reactions intensified, with Bill Ackman calling California "on a path to self-destruction" and Rep. Ro Khanna mocking threats by billionaires to leave.
  • Proponents and media estimates highlight sizable potential liabilities if enacted, with reports suggesting Page could owe over $12 billion and Thiel more than $1 billion.