High-profile figures like Google co-founder Larry Page and Oracle founder Larry Ellison are leaving California, and officials are concerned this trend will escalate by 2026. Silicon Valley entrepreneur Alison Huynh shared with Fox News Digital that two tax proposals from Democrats might push even more wealthy individuals to exit the state.
Huynh, who has a background in startups and fundraised for presidents Barack Obama and Joe Biden, believes the proposed annual wealth tax and the Billionaires Tax Act of 2026 could lead to a “massive migration” of not just billionaires, but also those investing in new technologies and infrastructure like AI and healthcare.
“It’s kind of like how a restaurant on the brink of failing raises prices instead of lowering them,” she mentioned, referring to the situation in California.
The annual wealth tax would impose a rate of 1% to 1.5% on wealth exceeding $50 million. Huynh explained that if someone has $1 million in cash but $49 million in inherited assets, they’d be taxed based on the entire $50 million. Meanwhile, the Billionaire Tax Act would slap a one-time 5% tax on assets over $1 billion, including business holdings.
Huynh illustrated the absurdity of the proposed taxes: “You could have a billionaire who’s tech-startup is cash-poor but is still taxed heavily on their overall net worth.”
Recent public filings show that multiple entities linked to Page have already moved out of California, with his family office and research foundation now based elsewhere. Ellison’s potential departure is hinted at by a reported major real estate sale in San Francisco, although details remain unverified.
Despite these potential changes, some believe that these tax proposals are simply a tactic to rally voters during the midterms. Huynh described them as “rage fodder” crafted to motivate Democratic voters, likening it to a type of “rich-grabbing.”
Supporters of the billionaire tax are currently working to get it on the ballot, though the wealth tax proposal isn’t yet scheduled for a vote. Many billionaires and business leaders aren’t waiting to see the outcome; Huynh noted that several individuals have quickly sold their California properties and relocated to states like Florida and Texas.
California’s laws are seen as increasingly burdensome for its wealthy inhabitants. Huynh criticized these policies, suggesting they could drive away major investors, leaving the state to suffer from lost businesses and job opportunities. She recalled how companies like Oracle are capable of relocating entire operations, creating a domino effect that impacts employment.
Furthermore, Huynh expressed concern about the implications of these laws on the state’s economy, concluding that the changes could endanger the very industries that have thrived in California.
