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News Topical, Digital Desk : California's Silicon Valley is known as the most sought-after abode of the wealthy. From Hollywood superstars to CEOs of leading tech companies, it's home to the region. However, ahead of the New Year, two billionaires have decided to leave Silicon Valley.
Tech billionaires Peter Thiel and Google co-founder Larry Page are preparing to leave California on New Year's Eve. The California government has introduced a bill that would impose a 5 percent tax on individuals with assets exceeding $1 billion, prompting the two billionaires to leave the state.
Home in the Hollywood Hills
Peter Thiel and Larry Page have long lived in California. They own luxurious mansions in the Hollywood Hills. Thiel also runs his own private firm in Los Angeles. However, they are now preparing to relocate outside California to other US states. Three of Larry Page's companies have filed documents with the Florida municipal corporation.
Billions of dollars in taxes will have to be paid
If the California government approves the new bill, it will become effective January 1, 2026. Consequently, individuals with assets exceeding $1 billion will be required to pay a 5% tax on their total wealth. Larry's potential net worth is $258 billion, so he could face a tax burden of over $12 billion. Thiel, meanwhile, has a net worth of $27.5 billion, and he would face a tax burden of $1.2 billion.
How to avoid tax
The California government introduced this bill in November 2026, and it needs a certain number of signatures to pass. This leaves billionaires with only a few hours left to avoid the tax: they cease to be California residents.
Politics intensifies over the exodus of billionaires
When asked about the exodus of billionaires, Democratic Congressman Ro Khanna, who represents California's Silicon Valley, quipped, "I'm going to miss them." California Governor Gavin Newsom has expressed concern, saying that if the bill is passed, wealthy people could flee to states like Texas and Florida.
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