Billionaires Ditch Newsom’s California, Take $1 Trillion With Them – RedState
We have devoted numerous articles to presenting to you the weaknesses of California. Governor Gavin Newsom and his large Democratic majority (there are currently 90 Democrats leading the Sacramento legislature, with only 30 Republicans) have brought high taxes, crime, homelessness, widespread illegal immigration and (un)affordability. These are just some of the issues they have faced, making this state that not long ago a place where people once dreamed of living a laughingstock.
Their latest stupid proposal is to tax more billionaires, who already pay a massive share of state revenue. Whether or not you like really, really rich people, you might want to be nice to them if you run a state, because in Cali, the top 1% of earners pay more than 39% of all income taxes.
Enter California’s proposed billionaires tax for 2026, which would impose a one-time five percent tax on people with net worths exceeding $1 billion. Although it is only a proposal so far and has not yet been made into law, it scares high-net-worth individuals enough that many of them will leave Dodge. They have already seen this film in California.
Entrepreneur Chamath Palihapitiya wrote on Sunday X that money is leaving the state at a record pace:
Unfortunate update so far:
No more calls from friends. The total wealth that has left California now stands at $1 trillion.
Just a few weeks ago we had $2 trillion in billionaire wealth. Today, 50% of that wealth is gone – taking into account income tax revenue, sales tax revenue, property tax revenue… https://t.co/IQZFieRgL7
– Chamath Palihapitiya (@chamath) January 11, 2026
His tweet continues:
Just a few weeks ago we had $2 trillion in billionaire wealth. Today, 50% of that wealth is gone – taking with them income tax revenue, sales tax revenue, property tax revenue, and all their staff (along with their salaries and income taxes).
In other words, by launching this ill-conceived attempt at an asset tax, California’s budget deficit will explode. And we still don’t know if the tax will make it to the ballot.
California billionaires were reliable taxpayers – 13.3% each year. These were the sheep that could be sheared forever. Now California will lose this source of revenue FOREVER.
Unless this ballot initiative is withdrawn, we will not stop the exodus of billionaires. With no rich people in California, the middle class will have to foot the bill.
As RedState’s Becca Lower reported, billionaires aren’t the only ones fleeing for greener pastures:
MONEY THEFT: The numbers don’t lie: Once again, blue states predictably top the annual list of where people are moving
California: A nice place to visit, but you wouldn’t want to be rich there
Meanwhile, Google’s billionaire brothers are reportedly looking for a new home. Get it? Research.
Larry Page and Sergey Brin, Google’s billionaire co-founders, are scaling back their ties to California as a ballot bill threatens to impose a one-time wealth tax on the state’s wealthiest residents, according to the New York Times.
Critics like LinkedIn co-founder Reid Hoffman have called the wealth tax a “horrible idea” and counterproductive.
“Poorly designed taxes encourage tax evasion, capital flight and distortions that ultimately generate less revenue,” he said.
Their combined net worth is around $518 billion, so that’s not pocket money.
NEWS:
Google co-founder Sergey Brin cuts ties with California.
In the 10 days before Christmas, an entity linked to Brin terminated or moved 15 California LLCs that oversaw some of his out-of-state business interests or investments.
With @RMac18 + @hknightsf. pic.twitter.com/BcwpJcGCfg
– Teddy Schleifer (@teddyschleifer) January 9, 2026
MORE: Atlas shrugs? California tech moguls threaten to abandon wealth tax
The measure remains under consideration for the November ballot — but billionaires didn’t get rich by being stupid, and it appears many of them are opting out when the odds are good. Newsom, meanwhile, actually criticized the tax, but he helped create an environment of taxing everyone to death while simultaneously destroying the state, so he can’t really distance himself from it. This is your ship, Captain, and you have charted us in disastrous waters; you own this one just like you own so many other failures.
Even if the initiative fails, much damage has already been done. Well done, Sacramento fools.
Editor’s note: California is the poster child for everything that is wrong with the Democratic Party and the “progressive” movement.
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