Overview
- Reports from the New York Times say Peter Thiel is exploring an out-of-state office and spending less time in California, while Larry Page has discussed leaving and linked LLCs have incorporated in Florida.
- Tech founders including Palmer Luckey, Dylan Field and Dave Friedberg warned the proposal could force asset sales, create double-tax issues for illiquid equity and push startups to relocate.
- Gov. Gavin Newsom has come out against the measure, as Rep. Ro Khanna voiced support and some investors publicly called for recruiting a primary challenger to him on X.
- The proposal remains in the signature-gathering phase for the November 2026 ballot, applies retroactively to residents as of Jan. 1, 2026 and allows payments over five years, with a $1 billion bill for fortunes of $20 billion.
- Backers project as much as $100 billion largely for healthcare, while the state’s Legislative Analyst’s Office and Department of Finance estimate tens of billions and warn receipts could shrink if wealthy residents leave.