California Millionaire Criticizes Larry Page and Sergey Brin for Avoiding Wealth Tax

In a notable public discourse, certain prominent California billionaires have come forward to criticize fellow wealthy individuals who are looking to escape the proposed wealth tax in the state. The spotlight has particularly fallen on Google founders Larry Page and Sergey Brin, who have reportedly considered relocating to Florida in response to the proposed 2026 Billionaire Tax Act.

California’s Proposed Wealth Tax and Reactions

The 2026 Billionaire Tax Act aims to impose a one-time 5% tax on net worth for residents with assets exceeding $1 billion. Currently, this group pays no recurring wealth tax apart from income and capital-gains taxes. If enacted, this measure could generate approximately $100 billion, directing nearly 90% of the revenue into health care programs. The remaining funds would support education, food assistance, and the administration of the tax.

Former healthcare executive Dave Nixon, a member of Patriotic Millionaires, expressed his disappointment towards those like Page and Brin. He emphasized that California has played a significant role in fostering an innovation-driven economy, which they have greatly benefited from. Nixon stated, “California has been very good to them and has supported an innovation economy.” He also deconstructed the myth that raising taxes leads to mass exodus of wealthy residents.

Different Views Among California’s Billionaires

Opinions on the proposed tax vary sharply among California’s wealthy citizens. While some, such as venture capitalist Peter Thiel, are contemplating leaving, others like Nvidia CEO Jensen Huang have voiced their commitment to the state regardless of the tax implications. Huang stated it “never crossed [his] mind” to depart because of tax policies.

• Dave Nixon: Defends wealth tax, criticizes wealthy exodus threats.
• Peter Thiel: Considering relocating due to the tax.
• Sergey Brin & Larry Page: Reportedly preparing to abandon California.
• Jensen Huang: Supports California, dismisses tax concerns.

The Economic Context

Healthcare costs in California are rising significantly, with a noted 7.5% increase from 2022 to 2023, outpacing average wage growth of 4.43%. Employers predict a further 9% rise in healthcare expenses by 2026 if no measures are taken to reduce these costs. This escalating financial burden poses a challenge for many Californians, particularly with the expected loss of MediCal coverage due to funding cuts.

Members of Patriotic Millionaires, including philanthropist Maureen Kennedy, advocate for the wealth tax as a solution to these pressing issues. Kennedy, who has lived in California since 1996, pointed out that while higher-income workers face steep tax rates, billionaires often enjoy lower tax rates, averaging only 24% between 2018 and 2020. In contrast, the overall population faced a tax rate of 30% and top earners incurred 45%. She reflects, “The American ethos is built on playing by the rules and paying your fair share.”

Conclusion

As California continues to evaluate the proposed wealth tax, discussions among wealthy residents will likely shape its future. The differing stances on this issue highlight a deep divide within the state’s affluent community regarding social responsibilities and economic contributions.