Google Founders Exit California Amidst Looming Wealth Tax Threat
Explainers
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Firstpost•12-01-2026, 17:02
Google Founders Exit California Amidst Looming Wealth Tax Threat
- •Google co-founders Larry Page and Sergey Brin are significantly reducing their ties to California, moving numerous LLCs out of the state.
- •This exodus is primarily driven by a proposed California ballot initiative to impose a one-time 5% wealth tax on individuals with assets exceeding $1 billion.
- •The proposed tax, if approved, would apply retroactively to California residents as of January 1, 2026, with a five-year payment window.
- •Critics, including Y Combinator CEO Garry Tan, warn that a technical flaw in the tax proposal could assess founders' wealth based on voting power, not economic stake, potentially costing Page and Brin 50% of their Alphabet holdings.
- •California Governor Gavin Newsom has criticized the proposal, fearing an exodus of capital and innovation, while SEIU-UHW officials downplay claims of a mass departure.
Why It Matters: Google founders are leaving California due to a proposed wealth tax, sparking debate over its impact on innovation.
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