2026 has swiftly brought a seismic shift to the demographic landscape of Silicon Valley, as some of the world’s most prominent tech titans reportedly finalize plans to exit California. Leading the headlines is Larry Page. This move could have major implications for Silicon Valley.
The Google co-founder, with venture capitalist Peter Thiel, has been exploring a move to more tax-favorable jurisdictions. The catalyst for this sudden departure is a controversial new ballot measure, popularly known as the “Billionaire Tax.” It reportedly seeks to impose a one-time 5% tax on the total assets of residents whose net worth is over $1 billion.
Larry Page joins California exodus in response to proposed “Billionaire Tax”
According to a recent Business Insider report, Google co-founder Larry Page is considering moving out of California in response to the proposed “Billionaire Tax.” The proposal, put forward by the Service Employees International Union-United Healthcare Workers West, is designed to generate over $100 billion to seal the gap between state budget deficits and fund critical healthcare services. However, the measure’s retroactive structure is what has sent shockwaves through the elite corridors of the tech industry.
Since the tax would apply to anyone who was a resident of the state on January 1, 2026, many of the state’s wealthiest citizens spent the final days of 2025 scrambling to establish residency in states like Florida and Texas. For an individual of Larry Page’s stature, whose fortune is estimated at $250 billion, staying in California could result in a staggering tax bill of more than $12 billion.
Critics of the move argue that for the “centibillionaire” class, such a tax represents little more than a “rounding error” in the context of their overall portfolio growth. Proponents of the measure point out that the state’s top 1% already contributes nearly 40% of California’s total income tax revenue, and that a more equitable distribution is necessary to sustain public infrastructure.
Yet, the pushback from the tech community has been swift and severe. Figures like David Sacks and Chamath Palihapitiya have publicly lambasted the policy, characterizing it as a seizure of assets that penalizes the very innovators who built the state’s modern economy. Sacks, a prominent venture capitalist, recently confirmed his relocation to Texas, framing the move as both a financial necessity and a political statement against what he described as fiscal mismanagement.
What could this tech pushback mean for Silicon Valley?
The broader implications for California’s economic future are deeply concerning to many analysts. While Governor Gavin Newsom has expressed opposition to the wealth tax, citing its potential to destabilize the state’s revenue base, the momentum behind the ballot initiative remains strong. The risk is not merely the loss of a one-time tax windfall, but the long-term erosion of the Silicon Valley ecosystem.
If the “job creators” and founders of the world’s most influential companies continue to flee to states with no income tax, the resulting loss of annual tax revenue and venture investment could create a fiscal hole far deeper than the one the wealth tax intended to fill.
As the battles over the 2026 ballot measure intensify, the departure of figures like Page and Thiel indicates the possible decline in California’s reign as the global epicenter of wealth and innovation. The “Golden State” now faces a delicate balancing act of addressing historic levels of wealth inequality without triggering a permanent flight of capital.
For the billionaires currently scouting Florida real estate and filing new incorporation documents, the decision to leave is a calculated response to a changing social contract, one that may redefine the geography of the American tech industry for decades to come.
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