California wealth tax drives $29B billionaire exodus to Florida

California's proposed 5 percent billionaire wealth tax has pushed at least six of the state's wealthiest residents to Florida, stripping an estimated $29 billion in potential tax revenue before the measure reaches voters in November.

"I think it's deeply un-American to seize people's assets. It might be unconstitutional," Brian Armstrong, chief executive officer at Coinbase, said on "The Katie Miller Podcast," warning that his firm may relocate from San Francisco.

Google cofounders Larry Page and Sergey Brin left California before the Jan. 1 residency deadline, with Page's potential tax bill at roughly $14 billion and Brin's at $13 billion. Uber cofounder Travis Kalanick moved to Texas, and Peter Thiel relocated to Miami. Combined, their departures remove about a quarter of the $100 billion the tax aims to collect.

The November ballot measure, known as Prop 40, would impose a one-time 5 percent levy on the net worth of roughly 200 billionaires residing in California after Jan. 1, 2026. With 90 percent of proceeds earmarked for healthcare — a sector facing up to $30 billion in federal funding cuts — the revenue loss from departures could widen California's budget gap significantly.

The exodus extends beyond California. Washington Gov. Bob Ferguson in March signed a 9.9 percent high-earners income tax on income above $1 million, prompting Amazon founder Jeff Bezos and former Starbucks CEO Howard Schultz to leave Seattle for Miami. Bezos has spent more than $230 million on properties on Indian Creek Island, while Schultz purchased a $44 million penthouse in Surfside. Meta CEO Mark Zuckerberg secured a $170 million waterfront mansion on the same island, a man-made refuge with 41 residents and 24/7 security.

Florida's appeal is straightforward: no state income tax, no capital gains tax, and a business-friendly regulatory environment. Miami's ultra-luxury market has surged, with 361 homes sold at $10 million or higher in 2025 — up from zero sales above $50 million five years ago. The median listing price in Miami fell about 3 percent year-over-year to $495,000, but demand at the high end keeps climbing.

The counter-offensive

Brin has donated $102 million to Building a Better California, a PAC promoting three counter-measures that would neutralize Prop 40 even if it passes. Thiel contributed $3 million to the California Business Roundtable opposing the tax. A UC Berkeley Institute of Governmental Studies poll shows voters nearly split, with 48 percent supporting the measure and 41 percent opposed. Even California's Democratic Gov. Gavin Newsom has opposed the tax, warning it could hurt the state's economy.

Corporate relocations follow

Citadel's Ken Griffin moved his hedge fund from Chicago to Miami in June 2022 and is building a $2.5 billion, 54-story headquarters downtown. Palantir announced its headquarters move to Miami in February. Oracle cofounder Larry Ellison made a 16-acre Manalapan estate his primary residence, saving an estimated $1 billion in taxes on stock sales and dividends, according to Forbes.

Coinbase's Armstrong said the company is "considering any and all options" for relocation, citing the tax as "a dangerous, dangerous path to go down." The exchange employs 4,300 workers internationally and operates its largest office in San Francisco. Armstrong, worth an estimated $8.8 billion, said he has paid "tons of taxes" on income but that taxing wealth "starts to feel like a third-world country."

The last comparable state-level tax migration followed the 2018 federal cap on state and local tax deductions, which accelerated moves from high-tax states. But the scale here is unprecedented — the combined net worth of billionaires who have already left California exceeds $570 billion. If Prop 40 passes in November and the counter-measures fail, the state could face legal challenges over the constitutionality of wealth taxes. If the measure fails, California loses the $100 billion revenue target while the billionaire exodus continues.

This article is for informational purposes only and does not constitute investment advice.