California Governor Gavin Newsom reportedly felt unwell upon hearing that a prominent tech leader had decided to leave the state.
Back in December, during a gathering at a treehouse event near San Francisco, Google co-founder Sergey Brin spoke to Newsom about his plans to exit California. Reports highlight that Brin cited the proposed millionaire’s tax as a concern. After all, with a net worth of around $260 billion, such a tax could certainly weigh heavily.
Newsom was described as “cold and hungry” during his interaction with Brin and his girlfriend at this holiday gathering hosted by cryptocurrency entrepreneur Chris Larsen. He seemed to reflect on a “lingering cold” he had caught from them, which, according to Bloomberg, had been on his mind for several months.
The governor, however, chose not to comment further on the matter.
Since then, the tax proposal has sparked significant backlash from the wealthy in Silicon Valley. Advocates argue that a 5% tax on billionaires, suggested by union SEIU-United Health Care Workers West, would direct funding to health care and education, areas facing potential federal cuts.
While the proposal is yet to be placed on the November ballot, some, like Brin, have already taken measures. Following his conversation with Newsom, Brin left California and purchased a mansion by a lake in Nevada. He has also spent millions opposing tax initiatives, contributing approximately $45 million to the group “Building A Better California,” and totaling around $58 million in expenses this year.
Interestingly, Newsom himself opposes the proposed tax, fearing it might hinder innovation in exchange for a short-term financial solution for the state’s budget. “We’re going to lose this — there’s no question in my mind,” he conveyed to the New York Times, expressing determination to safeguard the state.
This tax issue has certainly been a focal point in various races within California, especially affecting progressive candidates. For instance, billionaire Tom Steyer, who is running for governor, has made tax support central to his campaign, even using “Tax more” as an informal slogan.
Rep. Ro Khanna, also identifying as a progressive, is facing considerable pushback for backing this proposal. He’s defending his position in a heavily contested race against wealthy constituents in Silicon Valley, primarily due to these tax discussions.
