California could be saying bye-bye to billions in tax revenue if voters approve a controversial wealth tax on the state’s roughly 200 billionaires.
Ultra-wealthy taxpayers are actively making plans to ditch the state ahead of the new year, as Californians prepare to vote next November on a one-time 5% tax on billionaires’ net worth that could slap titans like Meta CEO Mark Zuckerberg and president of Nvidia Jensen Huang with tax bills running in the billions, multiple sources exclusively told The Post.
“Elon Musk, Tim Cook — any of these guys, they don’t need to be in Palo Alto in order to do what they do,” said David Lesperance, a tax advisor who works with California billionaires in venture capital and private equity.
Lesperance said his clients are hatching contingency plans to protect their assets ahead of a likely November 2026 vote on the wealth tax — and some will ditch the Golden State entirely.
Another source with knowledge of the situation confirmed that billionaires have been taking steps to change their residences and move out of state, which can include registering to vote in other states, making DMV appointments and even scheduling doctor appointments.
If passed, the measure would affect anyone who was a California resident at the start of 2026.
Supporters estimate the tax will raise up to $100 billion in revenue over five years. But the loss of even a single billionaire like Zuckerberg, Huang or Google co-founder Larry Page could translate into an 11-figure hit to the state’s tax coffers.
Five percent of Page’s estimated net worth is roughly $12 billion, whereas Zuckerberg and Huang could be on the hook for some $12 billion and $8 billion, respectively.
The SEIU-United Healthcare Workers West labor union — the main force behind the tax measure dubbed the 2026 Billionaire Tax Act — says proceeds would be used to replenish health care funds lost to federal funding cuts and support public schools.
The measure needs to garner around 870,000 signatures by next spring to qualify for the ballot. Health care workers and field representatives could begin collecting signatures in January and February, according to a union spokesperson.
Gov. Gavin Newsom is on record opposing the tax, though the SEIU believes he will eventually change his mind.
“The governor has consistently opposed state-level wealth taxes — recognizing that if implemented at a state-only level, they drive a race to the bottom,” Izzy Gardon, Newsom’s spokesperson, told The Post.
Elsewhere, a committee opposing the tax, Stop the Squeeze, has already received $100,000 from billionaire venture capitalist Ron Conway.
In another possible effort to counter the billionaire tax, attorney Kurt Oneto filed paperwork this month with the attorney general’s office to put a constitutional amendment on the ballot next year that would clarify the rules around California residency.
It’s unclear who is behind this push and Oneto did not immediately respond to a request for comment, but a source said it is almost certainly some of the same wealthy Californians who are currently taking steps to flee the state.
Garry Tan, CEO of San Francisco-based tech startup accelerator Y Combinator, said the proposed billionaire tax would encourage companies and entrepreneurs to flee California “en masse.”
“While this tax wouldn’t impact me personally, I oppose it because California should be focused on keeping entrepreneurs and investors here — creating jobs, growing the economy, and funding our future,” Tan wrote in a text message to The Post. “Driving capital out of the state will hurt innovation and ultimately make it harder, not easier, to support healthcare and essential services.”
Tan added, “This measure would cause a stampede of unicorns out of California to other states, which would reap the benefits of entrepreneurs, technology and jobs that California enjoys now.”
Lesperance said he tells his billionaire clients to think of the US as a “political wildfire zone.”
“They will be long gone before the fire starts licking at their front door,” he said.
Texas, Florida and Nevada are some of the most popular spots for ultra-high earners trying to lower their bills, according to Lesperance.
