California’s long-running battle to keep wealthy residents and business leaders from relocating may be entering a new phase.
As several prominent entrepreneurs continue shifting assets and operations outside the Golden State, one Silicon Valley insider is warning that proposed tax measures could push even more investors, founders and high-net-worth individuals toward the exits in 2026.
Among the latest names linked to moves away from California are Google co-founder Larry Page and Oracle founder Larry Ellison, developments that have reignited debate over the state’s tax policies and business climate.
Silicon Valley Insider Predicts “Mass Migration”
Allison Huynh, a tech entrepreneur, investor and former fundraiser for former Presidents Barack Obama and Joe Biden, believes two proposed California tax measures could dramatically reshape the state’s economic landscape.
According to Huynh, the proposals could spark a “mass migration,” starting with “not just the billionaires, but the people who are investing in new ideas, in new infrastructure, whether it’s AI, healthcare, tech, robotics.”
She argued that the impact would extend far beyond the ultra-wealthy, affecting the investors and innovators who help finance emerging industries and job creation.
High-Profile Business Leaders Move Assets
Public filings with California’s Secretary of State indicate that several entities tied to Larry Page were relocated out of California in December, ahead of a Jan. 1, 2026 residency date associated with one of the proposed tax measures.
The filings reportedly show that Page’s family office, Koop LLC, and research organization Flu Lab LLC no longer list California as their location. Meanwhile, flying-car venture One Aero now lists Florida as its primary address.
Ellison has also fueled speculation about reducing his California footprint. Reports have linked him to the sale of a San Francisco property in what could rank among the city’s largest real estate transactions, though details of the reported deal have not been independently verified by major outlets.
Tax Plans Draw Sharp Criticism
Huynh compared the proposed tax increases to a struggling restaurant raising prices rather than attracting customers.
“Instead of lowering the price, they increase the price,” Huynh said.
“And then you go into the restaurant, and it’s like $50 for a bowl of really bad dumplings.”
One proposal would establish an annual wealth tax on assets exceeding $50 million. Huynh argued that the tax would be based on total valuation rather than available cash.
“And that’s paper valuation,” she explained. “So, for example, if you have $1 million in liquid assets, that’s cash, and $49 million, say, in artwork or in a house that you inherited from your family. You would be responsible for the entire 50 million in terms of your cost basis for that 1%.”
Critics of wealth taxes frequently argue that individuals may possess valuable assets without having enough liquid cash to easily cover large tax bills.
Billionaire Tax Act Raises Additional Concerns
The second proposal, known as the 2026 Billionaire Tax Act, would impose a one-time 5% tax on assets valued above $1 billion, including business holdings.
Huynh said the measure could create significant financial burdens for founders whose wealth is tied up in company ownership rather than cash.
“You could be a founder, you could be a tech star, and you could be worth a hundred billion dollars. But say you only have like $2 million in liquid assets because all that money is used to run your new AI company. Well, doesn’t matter. You’re going to be taxed entirely on that $100 billion. And, so, effectively, you owe the state of California one time, $5 billion.”
Supporters of such measures argue they would generate revenue from the state’s wealthiest residents, while opponents contend they could encourage relocation and investment flight.
Politics And Tax Policy Collide
Huynh believes the proposals serve a political purpose as much as an economic one.
Though she described the potential economic consequences as severe, she argued that supporters view the measures as a tool to energize voters ahead of the midterm elections.
“It is the Democrats’ answer to MAGA,” she explained, saying it’s a type of “Eat the rich.”
While the annual wealth tax proposal does not currently appear on track for the November ballot, advocates of the Billionaire Tax Act continue gathering signatures in hopes of placing it before voters.
Investors Already Looking Elsewhere
According to Huynh, many affluent Californians are not waiting for the ballot results before making decisions about where to live and invest.
“So many people I know, including certain family members, have all of a sudden sold their house in two days in the state of California. And many of them went house shopping in Florida, in Texas and also in Puerto Rico,” she said.
She added that many of those exploring moves are deeply involved in sectors such as robotics and artificial intelligence.
“These are founders, investors in robotics, in AI companies. They are controversial, but you have to admit they have created a lot of value — thousands and hundreds of thousands of jobs in California.
Fears Of Job Losses And Corporate Relocations
Huynh warned that efforts to impose additional taxes on wealthy residents could ultimately cost California jobs and investment.
“We can’t sanction these billionaires to be in the California jurisdiction,” she said, exasperated. “So, why are we forcing bad legislation that will drive the vast majority of the investors in California businesses? And they will likely take their businesses with them, their multibillion-dollar businesses with them. We saw that with SpaceX. We saw that with Oracle. They’ll take it with them to Texas, to Tennessee, to Florida and all the thousands and thousands of jobs with it. And there’s nothing we can do,
“They’re not going to want to be in California,” she said. “This is a very, very dangerous move.”
Whether the proposed measures ultimately reach voters remains uncertain. What is clear, however, is that California’s debate over taxation, economic growth and business retention is likely to remain a major political and financial battleground throughout 2026.
