Overview
- Elon Musk’s attorney Alex Spiro urged Gov. Gavin Newsom to oppose the measure in a Dec. 11 letter, warning of lawsuits and saying billionaire clients would relocate if it becomes law.
- Reports say Google cofounder Larry Page and investor Peter Thiel are exploring steps to change residency or operations, including Florida filings tied to Page and an out-of-state office for Thiel’s firm.
- Gov. Gavin Newsom has publicly opposed the proposed wealth tax, though he cannot veto a voter initiative if it qualifies for the November 2026 ballot.
- The proposal would levy a one-time 5% tax on Californians with net worths above $1 billion, with roughly 90% of proceeds directed to healthcare to offset federal cuts; backers must collect about 875,000 valid signatures.
- Tech leaders including Palmer Luckey, Dylan Field, and Garry Tan warn of forced sales, valuation and enforcement problems, and potential departures, while economists cited in coverage note mixed evidence on wealthy out-migration after tax hikes.