Why Silicon Valley is Really Talking About Fleeing California (It’s Not The 5%)
Silicon Valley founders are leaving California—not just over a 5% tax, but a wealth tax targeting voting shares.
Matilda
Why Silicon Valley is Really Talking About Fleeing California (It’s Not The 5%)
Why Silicon Valley Founders Are Fleeing California Silicon Valley’s elite aren’t just grumbling about taxes—they’re packing up and leaving. But contrary to headlines fixated on a proposed 5% levy, the real flashpoint is a far more aggressive wealth tax that could force founders to pay on control they hold, not just the equity they own. If you’ve wondered why billionaires like Larry Page are snapping up Miami real estate or why even Governor Gavin Newsom is publicly opposing the measure, it’s because this proposal threatens the very foundation of how startup founders build—and keep—wealth in California. Credit: David Paul Morris/Bloomberg / Getty Images At the heart of the controversy is a ballot initiative backed by California’s health care union, aiming to impose a one-time 5% tax on individuals with a net worth exceeding $1 billion. Sounds straightforward—until you dig into the fine print. The tax wouldn’t just apply to liquid assets or realized gains. Instead, it targets voting power …
