Larry Page Exits California Amid Billionaire Wealth Tax Push
Google co-founder Larry Page is pulling up stakes in California—both personally and professionally—as the Golden State inches closer to enacting a controversial 5% wealth tax on billionaires. According to a Business Insider report, Page has already begun shifting key business entities out of California and into Delaware, a move that underscores growing unease among ultra-high-net-worth individuals over the proposed ballot measure set for 2026.
Why Larry Page Is Leaving California
The billionaire, who helped launch one trillion-dollar company and has since invested in everything from flying cars to flu research, is no longer based in California, sources say. His departure isn’t just symbolic: Page has reincorporated several of his private ventures—including his family office Koop, aviation startup Dynatomics, flying car company One Aero, and Flu Lab—under Delaware’s more business-friendly legal framework. The relocation signals a strategic pivot, possibly to shield assets from California’s looming tax ambitions.
California’s Proposed Billionaire Wealth Tax Explained
At the heart of this exodus is a ballot initiative aiming to impose a 5% annual tax on net worth exceeding $1 billion. If passed in 2026, California would become the first U.S. state to levy a direct wealth tax of this scale. Proponents argue it’s a necessary step to address income inequality and fund public services, especially housing and education. Critics, however, warn it could trigger a mass flight of capital—and high-profile residents like Page.
A Growing List of Tech Titans Opposing the Measure
Page isn’t alone in voicing concern. Prominent tech figures including David Sacks (former COO of PayPal), Oculus founder Palmer Luckey, and Reddit co-founder Alexis Ohanian have all publicly criticized the proposal. Their pushback reflects a broader tension between California’s progressive policymaking and its tech elite, many of whom built empires within the state’s innovation ecosystem but now feel targeted by its fiscal policies.
Delaware: The New Haven for Billionaire Assets
Delaware’s appeal isn’t new—it’s long been the incorporation capital of America thanks to its favorable corporate laws, experienced judiciary, and tax advantages. But with California’s wealth tax looming, it’s becoming an even more attractive refuge. For someone like Page, whose portfolio spans moonshot R&D and private equity-style holdings, reincorporating in Delaware offers legal clarity, privacy, and potential insulation from California’s aggressive revenue measures.
What This Means for California’s Economy
The departure of even a single billionaire might seem negligible, but if Page’s move inspires others to follow, the state could face a significant revenue paradox. While the tax intends to raise billions, it risks pushing ultra-wealthy residents—and the capital, jobs, and tax dollars they bring—out of state. California already lost an estimated $8 billion in income tax revenue between 2016 and 2021 due to high-earner migration, according to Stanford researchers.
Page’s Quiet but Strategic Retreat
Unlike some Silicon Valley peers who take to social media to voice political opinions, Page has maintained a famously low public profile since stepping down from Alphabet’s board in 2019. Yet his actions speak volumes. By quietly reorganizing his business empire outside California, he’s demonstrating a calculated response to policy risks—without making a public spectacle. This aligns with his long-standing preference for privacy over punditry.
Wealth Taxes and Innovation Hubs
California’s dilemma isn’t unique. States and nations worldwide are grappling with how to tax extreme wealth without stifling innovation or triggering capital flight. Countries like France and Norway have experimented with wealth taxes, often scaling them back after unintended economic consequences. For innovation hubs like the Bay Area, the balance is especially delicate: policies must fund public needs without eroding the entrepreneurial ecosystem that fuels the state’s global tech dominance.
Will the 2026 Ballot Initiative Succeed?
The wealth tax proposal still faces hurdles before it reaches voters. Organizers must gather enough valid signatures to qualify for the 2026 ballot—a process already underway. Even if it qualifies, public opinion remains divided. A 2024 UC Berkeley poll showed 58% of likely voters supported a billionaire tax, but enthusiasm dropped when respondents learned it could drive residents and businesses out of state.
Tech’s Shifting Relationship with California
Page’s exit is emblematic of a broader recalibration. While California remains a magnet for startups and talent, rising costs, regulatory complexity, and political friction are nudging even its homegrown champions to diversify their bases. From Elon Musk’s move to Texas to Marc Benioff’s public critiques of San Francisco’s governance, the love affair between tech and California is cooling—especially at the billionaire level.
What’s Next for Larry Page’s Ventures
Despite the legal relocation, Page’s companies are likely to maintain operational ties to California—particularly in R&D-heavy sectors like aerospace and biotech, where the state’s talent pool remains unmatched. Still, the symbolic and financial implications of incorporation elsewhere are significant. It’s a clear signal that even those who helped build California’s digital economy are reevaluating their long-term commitments.
The Takeaway: Policy vs. Prosperity
Larry Page’s strategic retreat highlights the high-stakes game between progressive taxation and economic retention. As California moves toward a historic vote on wealth taxation, it must weigh moral imperatives against market realities. For now, one of its most influential tech pioneers has chosen to hedge his bets—offshore, legally, and quietly—leaving the state he helped transform to grapple with its fiscal future alone.
