Google Co-Founder Heads to Florida
Sacramento, CA. – A seismic shift in California’s economic landscape is quietly underway as lawmakers and union backers push a controversial billionaire wealth tax. What was pitched as a modest 5 percent levy on the ultra-wealthy has exposed more serious threats to innovation and property rights — and it has already driven one of the state’s most famous founders out of California. Google co-founder Larry Page has relocated to Florida, driven in part by provisions in the tax that could assess billions of dollars on unrealized gains tied to super-voting Class B stock.
The proposal — officially titled the 2026 Billionaire Tax Act — would impose a one-time 5 percent charge on the net worth of individuals whose worldwide assets exceed $1 billion as of January 1, 2026. Supporters frame it as a targeted revenue source for healthcare, food assistance, and education, critics warn the tax’s mechanics could reshape American capital formation.
What the Proposal Actually Does
Under the initiative, wealth is defined as total global net worth, including publicly traded stocks, private business interests, intellectual property, and other assets — excluding most real estate and certain retirement accounts. Rather than taxing only realized income, the tax includes unrealized gains in asset value. That means founders may owe tax on increases in stock value they have never sold.
The language of the proposal goes a step further: it treats voting power as though it were equivalent to economic ownership for founders with dual-class stock structures. In Silicon Valley, it is common for founders to hold Class B super-voting shares that confer control with far less economic interest than voting interest. Under the initiative’s valuation rules, a founder with 3 percent of a company’s economic shares but 30 percent voting control could be treated, for tax purposes, as owning 30 percent of the company — multiplying their taxable wealth many times over.
Economists have pointed out that this “voting power equals ownership” assumption effectively taxes phantom wealth — value that exists on paper but is not proportionate to actual economic ownership. The result: tax bills far greater than a simple 5 percent of net worth might suggest, particularly for founders of tech companies structured around dual-class stock.
Exodus of Billionaires Begins
The reaction among California’s wealthy has been dramatic. Larry Page, whose super-voting Class B shares give him outsized control at Alphabet, has purchased multiple high-value properties in Florida and moved many business entities out of California. His relocation comes amid widespread concerns that the wealth tax could penalize founders disproportionately based on voting shares rather than actual economic stake.
Venture capitalist Peter Thiel has also publicly mobilized against the tax, donating millions to efforts to defeat it and shifting aspects of his business operations to Miami. Other tech leaders and investors are reconsidering their California footprint, with some establishing offices or residences in states like Texas or Florida.
Economic and Legal Concerns
Economists and legal scholars caution that enforcing a tax on unrealized gains is inherently complex. Valuing privately held assets and dual-class stock structures invites disputes and litigation. The retroactive assessment based on residency at a fixed date could expose residents to significant tax bills even if they had intended to leave the state before the tax was implemented.
Critics also argue that using voting power as a proxy for economic value could violate constitutional protections against uncompensated takings, as it effectively treats control rights — not purely economic interest — as taxable property. Legal challenges are almost certain if the measure qualifies for the ballot and is approved by voters.
Political Clash
Supporters, including union leaders and some progressive advocates, say the tax would help fill budget gaps in healthcare and social services created by federal spending cuts. They maintain that the ultra-wealthy have benefited disproportionately from California’s economy and should contribute more.
Governor Gavin Newsom (D), has distanced himself from the proposal, warning that it threatens investment and could accelerate capital flight. Business groups such as the California Chamber of Commerce and the California Business Roundtable have echoed those warnings, describing the tax as a “dangerous wealth tax” that could harm the state’s competitiveness.
Broader Implications
California’s billionaire tax debate has quickly transcended local politics to become a national test case. If approved by voters in November 2026, it could encourage similar initiatives elsewhere, particularly in high-tax states. At the same time, the backlash has highlighted the risks of taxing unrealized gains — a feature that economists and tax policy experts say is untested and could disrupt capital formation.
For states like Texas and Florida, which champion low taxes and economic freedom, California’s experiment presents both a contrast and an opportunity. As capital and executives reassess their domiciles, the business climate and economic growth of states without such wealth taxes may benefit.
Larry Page’s move to Florida is not just a personal choice. It is a symbolic indicator of where capital flows in response to policy. Once talent and wealth leave, they seldom return. California’s experiment in wealth taxation should give pause not only to its voters but to every state considering similar schemes.
Sources:
Tax Foundation, “The Proposed California Wealth Tax Is Far Higher than 5 Percent,” January 2026.
California Attorney General Initiative Text, “2026 Billionaire Tax Act.”
Business Insider, “Larry Page Continues His California Exile with Florida Property Purchases,” January 2026.
Yahoo Finance, “Peter Thiel’s $3 Million Donation to Defeat California Wealth Tax,” January 2026.
WebProNews, “Dual-Class Voting Share Valuation Sparks Silicon Valley Outrage,” January 2026.