Following SpaceX’s groundbreaking and discreet IPO involving OpenAI, a significant shift from California is anticipated, potentially bringing a wave of tech billionaires to Florida.
SpaceX’s IPO, which took place on June 12, has valued the company at over $2 trillion, positioning Elon Musk as the world’s first trillionaire and creating around 4,400 new billionaires among its employees.
“We’re already seeing California area codes popping up. The discussion is definitely changing,” noted Fort Lauderdale Downtown Development Authority’s CEO, Jenny Morejon, during a segment on Fox News.
“We’re witnessing a generation of AI founders in this era of liquidity and SpaceX. They’re accustomed to rapid changes and being very transparent,” she added.
In December, Google co-founder Larry Page made headlines by purchasing two homes in Miami for $173.4 million, soon followed by Meta CEO Mark Zuckerberg, who acquired a mansion in Miami for $170 million in March.
Several other tech moguls, like Palantir co-founder Peter Thiel and Amazon founder Jeff Bezos, have also chosen to leave California to safeguard their wealth.
“An IPO often leads to a significant financial transition, and executives could see their largest cash influx ever. Many won’t just gain millions but potentially tens of millions overnight,” explained Joe DaGrosa, chairman of DaGrosa Capital Partners.
“So, I suspect they’ll seriously consider moving to South Florida and Miami,” he remarked.
California has the highest state sales tax in the nation, along with a top individual income tax rate of 13.3% on earnings exceeding $1 million.
In contrast, Florida does not have a personal state income tax or capital gains tax.
Despite California’s high tax rates, a new millionaire tax is expected to be on the ballot during the upcoming November election. This proposed bill aims to levy a one-time 5% tax on billionaires in the state.
