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California billionaires give away fortunes to avoid proposed billionaire tax
Fox Business • • nation
Key Points:
- Wealthy Californians are employing tax-efficient strategies such as philanthropy, real estate restructuring, and purchasing tangible assets to reduce their net worth below $1 billion and avoid a proposed one-time 5% billionaire tax.
- The California Billionaire Tax Act, supported by over 1.55 million signatures, would tax residents with assets exceeding $1 billion as of January 1, 2026, with payments due in 2027 and spread over five years with interest.
- Many high-net-worth individuals distrust the state government’s use of tax revenues and prefer to donate to charities or restructure holdings to minimize the tax impact rather than pay the government.
- Some prominent figures, including Larry Page, Sergey Brin, Mark Zuckerberg, and Peter Thiel, have already relocated their residences or businesses out of California ahead of the tax deadline.
- Public opinion is somewhat divided, with about 54% of California voters supporting the billionaire tax according to a recent poll by the Public Policy Institute of California.
