Silicon Valley is witnessing an exodus of tech wealth as California lawmakers consider a new tax targeting individuals with assets exceeding $1 billion.Google co-founder Sergey Brin has begun relocating business interests and is reportedly seeking a new primary residence outside the state, mirroring a trend among other tech executives. The proposed levy, a one-time 5% tax, could generate billions in revenue for the state but is prompting concerns about it’s potential impact on California’s economy and its long-held status as a hub for innovation and entrepreneurship.
Sergey Brin, one of the world’s wealthiest individuals, is relocating away from California. The billionaire has moved over a dozen of his entities out of the state in recent days, according to The New York Times.
Brin’s move coincides with a similar decision by Larry Page, Google’s other co-founder. With an estimated net worth of $259 billion, Brin holds a 6% stake in Alphabet, Google’s parent company.
California is considering a proposed one-time 5% tax on individuals with over $1 billion in assets. For Brin, this would translate to an estimated tax liability of approximately $13 billion.
Tech Executives Shift Wealth Amid Proposed California Tax
The potential tax has spurred concern among high-net-worth residents, triggering a wave of departures. Brin has relocated business interests, including the management of his superyachts, to Nevada. He is also reportedly searching for a new home in Miami, a destination gaining popularity among those seeking to avoid California’s tax burden. This shift in residency among tech leaders could have broader implications for the state’s economy.
As The Telegraph notes, Larry Page recently invested in two Miami residences totaling $173.4 million. Other tech giants, including Elon Musk and Larry Ellison, have also left California. Musk, for example, has moved the headquarters of several of his companies to Texas.
Mark Zuckerberg remains in California, despite being the sixth-richest person globally with a net worth of $229 billion, while others like Jensen Huang of Nvidia appear less concerned about the new tax proposal.
Source: telegraph.co.uk, “The New York Times”
