As high-profile figures like Google co-founder Larry Page and Oracle founder Larry Ellison leave California, there are growing concerns about what this means for the future of the state’s economy. Silicon Valley entrepreneur Allison Huynh voiced her worries in an interview with Fox News Digital. She warns that the ongoing “mass migration” of billionaires and innovators out of California is just accelerating, and it’s set to gain momentum in 2026 when new tax proposals come to the forefront.
Huynh, who has experience as a startup founder, investor, and former fundraiser for Democratic presidents, believes that the proposed annual wealth tax and the 2026 Billionaire Tax Act could push many wealthy individuals out of California. She stated, “This isn’t just about billionaires leaving; it’s about those investing in new ideas and infrastructure”—essentially the lifeblood of California’s economy.
Reviewing public filings, it appears Page is already moving his business interests out of the state. His family office and his influenza research fund have changed their official addresses from California. Further highlighting this trend, his venture in flying cars has found a new home in Florida.
Similarly, Ellison is showing signs of distancing himself from California. Reports suggest he might have sold his San Francisco home for $45 million, making it one of the city’s most significant real estate deals of the coming year. While this sale has not been independently verified, it’s part of a larger pattern of influential figures reevaluating their ties to the state.
Huynh described the proposed tax hikes as reminiscent of a restaurant on the verge of closure that chooses to raise prices rather than cut them. “It’s like paying $50 for a bowl of really bad dumplings,” she remarked, drawing a vivid comparison to illustrate the absurdity of the taxes. The annual wealth tax would impose a charge of one to 1.5 percent on assets exceeding $50 million, calculated based on paper valuations.
The ramifications are significant. Under this tax, a person could find themselves liable for a hefty fee even if their liquid assets are far less than their total worth. For instance, one might possess $1 million in cash and a $49 million art collection, thus triggering the tax on the entire $50 million valuation.
The second proposal, the 2026 Billionaire Tax Act, presents an even graver concern. It would assess a one-time five percent tax on any asset over $1 billion. Huynh emphasized that even if a billionaire has minimal liquid cash to manage their business, they will still be taxed on their entire fortune, creating an unsustainable financial burden.
Furthermore, Huynh suspects these tax proposals are strategically intended to stoke dissatisfaction and drive voters to the polls. She compared the situation to a kind of “Eat the rich” sentiment. While the bill proposing these tax increases may not currently be on track for the ballot, proponents are actively gathering signatures to push it forward.
She pointed out that individuals aren’t waiting for the tax outcome before acting. Many she knows, including family members, have quickly sold their homes and are now looking for housing in states like Florida, Texas, and Puerto Rico. These are not just wealthy elite; they include investors and developers who have contributed to job creation in California.
In Huynh’s view, this legislative push is misguided. She expressed frustration over the perception that California can sanction its wealthiest citizens. “Why are we forcing bad legislation that will drive the vast majority of the investors in California businesses?” she lamented, questioning the long-term implications for the state’s economy. She referenced the earlier relocations of companies like SpaceX and Oracle to states with more favorable business climates: “They’ll take their businesses, their multi-billion-dollar investments, and the thousands of jobs with them.”
She staunchly maintained that such tax proposals could pose a severe risk to California’s future. “This is a very, very dangerous move,” she concluded, underscoring the urgency of the situation as these affluent movers begin to seek opportunity elsewhere. The potential exit of business leaders and innovators is more than just a shift; it reflects a significant challenge for California’s economic stability moving forward.
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