According to TechCrunch, Google co-founder Larry Page is moving several of his business entities out of California as the state considers a new wealth tax. The report, citing Business Insider, states Page has begun reincorporating his family office (Koop), his flu research company (Flu Lab), his aviation firm (Dynatomics), and his flying car startup (One Aero) in Delaware. Furthermore, Page himself is reportedly no longer a resident of the state. This follows a proposed ballot initiative for 2026 that would impose a 1.5% annual tax on the worldwide assets of California billionaires, defined as those with a net worth over $1 billion. Other tech figures like David Sacks, Palmer Luckey, and Alexis Ohanian have also criticized the tax plan.
The Great California Exit?
This isn’t just about one billionaire getting grumpy about taxes. It’s a potential trend, and Page is arguably the biggest name to make a move so far. The proposed tax is a radical shift—it’s not on income, but on total wealth, including unrealized gains from stock holdings. For someone like Page, whose fortune is largely tied to Alphabet stock, that could mean writing a massive check to Sacramento every year even if he doesn’t sell a single share. So, his reaction is a logical, if stark, business calculation. But it raises a huge question: if the wealth tax passes, will California see a slow bleed of its ultra-wealthy residents and the capital they control?
Winners, Losers, and Paper Billionaires
Here’s the thing about wealth taxes: they sound straightforward, but the mechanics are a nightmare. The immediate “winners” would be the state’s coffers, funding social programs. The obvious “losers” are the billionaires. But the real impact is murkier. What about the employees and operations of those businesses Page is moving? Will they follow? And what does it mean for a “paper billionaire” whose net worth is in volatile tech stock? A bad market year could still leave them with a gigantic tax bill on assets that have cratered in value. It’s a policy that could incentivize the very wealth flight it aims to fund, potentially leaving a smaller-than-expected revenue pie. States like Florida and Texas, with no income tax, are probably watching this California drama with a smile.
A Symbolic Blow
Beyond the dollars, Page’s move is a symbolic gut punch for California. He’s a founding father of the state’s modern tech empire. His physical and financial exit signals a potential rupture in the relationship between Silicon Valley’s titans and their home state. For an industry already embracing remote work and decentralization, this tax threat provides a concrete reason to formalize that exit. The broader exodus of wealth and business, as covered by The New York Times, suggests this is part of a larger pattern. The ballot fight over this tax in 2026 won’t just be about economics; it’ll be a referendum on California’s identity as the center of the tech universe. And right now, some of its most famous residents are voting with their feet.
