California Taxes Billionaires

Silicon Valley is abuzz with talks of fleeing California, but the reason behind this nervousness is not the proposed 5% wealth tax rate. According to a recent report in the New York Post, the actual concern lies in the fact that the wealth tax would target founders' voting shares, rather than their actual equity ownership. This means that individuals like Larry Page, who owns approximately 3% of Alphabet's shares but has significant voting power, would be hit hard by the tax. The proposed wealth tax has sparked anxiety among tech founders and billionaires, who are considering relocating to avoid the financial burden. This development has significant implications for California's economy and the tech industry as a whole, as the state's favorable business environment and talent pool may be compromised if top entrepreneurs and companies choose to leave. The exodus could have far-reaching consequences for the state's revenue and job market.