Why Silicon Valley is really talking about fleeing California (it's not the 5%)
TechCrunch • • nation
Key Points:
- California’s proposed one-time 5% wealth tax targets founders based on their voting shares rather than actual equity, potentially imposing massive tax bills on billionaires like Larry Page who control disproportionate voting power.
- Founders of private startups could face crippling taxes early in their companies’ growth stages, with valuation disputes adding complexity and risk of penalties, despite provisions allowing deferrals and alternative appraisals.
- The tax initiative, backed by California’s health care union to fund emergency room and Medicaid cuts, aims to raise $100 billion from about 200 billionaires and would apply retroactively to residents as of January 1, 2026.
- Opposition is strong and bipartisan, including Silicon Valley elites and Governor Gavin Newsom, who are actively
