Overview
- Fortune reports that Larry Page, Sergey Brin, Peter Thiel, Steven Spielberg, Travis Kalanick, and Don Hankey left before the January 1, 2026 residency cutoff, a cohort that could have generated an estimated $27 billion under the proposed tax.
- The measure would levy a one-time 5% excise on net worth above $1 billion for California residents and applicable trusts, with residency set on January 1, 2026 and net worth measured on December 31, 2026.
- The tax base broadly covers financial and personal property but excludes directly held real estate, and includes default valuation rules for closely held businesses that can be overridden by certified appraisals.
- Governor Gavin Newsom opposes the proposal, while billionaire-funded efforts have ramped up to fight it, including Sergey Brin’s $20 million to Building a Better California and PACs such as Stop the Squeeze and Golden State Promise.
- A Hoover Institution analysis cited in opinion coverage contends revenue would be far below the $100 billion touted by proponents and warns that departures could reduce future income-tax collections.