California's elite are split on the proposed wealth tax

"One of the biggest business stories kicking off the year is the proposed wealth tax in California. The state's rich and powerful, worth more than $1 billion, would face a one-time 5% tax on their assets if the plan gets approved. The proposal, which aims to address a projected multibillion-dollar state budget deficit, has prompted plenty of grumbling among the California elite."

"Page converted his secretive family office out of California in late December and incorporated it in Delaware, according to my colleague Hugh Langley's exclusive reporting. Page also recently incorporated other entities in Delaware, including a vehicle used to fund influenza research and another used for his flying car ventures. He lists principal office addresses outside of California for those entities."

"Nvidia CEO Jensen Huang struck a very different tone. He said he's "perfectly fine" with the tax and gave no indication he plans to leave Silicon Valley, even if it costs him. Others are more pessimistic. LinkedIn cofounder Reid Hoffman called the proposal "horrendous" for innovation, warning that poorly designed wealth taxes don't raise reliable revenue - they push money and talent elsewhere."

California may impose a one-time 5% wealth tax on residents with more than $1 billion in assets to address a projected multibillion-dollar budget deficit. Several billionaires have begun moving assets and incorporating entities outside California, including high-profile shifts to Delaware. The measure would apply retroactively to residents as of January 1, 2026 if approved, prompting a year-end rush to relocate holdings. Reactions among tech leaders vary, with some expressing acceptance and others warning that poorly designed wealth taxes could drive money and talent out of the state.

Read at Business Insider