In a developing trend that’s raising concerns about the future of California’s wealthiest residents, another Silicon Valley mogul has chosen to leave the state.
Sergey Brin, co-founder of Google, is the latest high-profile individual to relocate his business interests out of California, sparking further speculation that the state’s ultra-rich are abandoning it in droves.
Brin’s Move: The Final Straw?
Sergey Brin, who is currently the fourth wealthiest person in the world, reportedly moved a significant portion of his business holdings out of California just before Christmas.
According to The New York Times, 15 limited liability companies (LLCs) tied to Brin’s diverse investments and business ventures were registered elsewhere, with seven of those now based in Nevada.
This includes companies associated with his super-yacht management and even a private terminal at San Jose International Airport.
Though Brin remains a major figure in California’s tech scene, owning multiple properties within the state, his full commitment to staying in California is now in question.
Brin’s exit comes on the heels of Google co-founder Larry Page making similar moves late last year, with his businesses shifting to Delaware and Florida.
The Billionaires’ Tax: The Spark for the Exodus?
Brin’s departure comes amid growing fears surrounding California’s proposed billionaires’ tax, which could require individuals worth over $1 billion to pay a one-time levy on their net worth—5% of it, to be exact.
This tax would target assets like stocks, bonds, artwork, and intellectual property, rather than income.
While the tax has not been finalized, it has already stirred plenty of controversy.
If it does pass, it would apply retroactively from January 1, 2026.
California already boasts around 200 billionaires, and if the proposal gains enough support to land on the ballot and eventually pass, it could change the landscape of wealth distribution in the state.
Brin and Page: Google’s Founders and Their Growing Separation From California
Though they helped build Silicon Valley, both Brin and Page have increasingly distanced themselves from California.
Brin, worth $248.2 billion according to Forbes, has reportedly considered buying property in Miami, while Page has also turned to Delaware and Florida for his business operations.
The move of these two tech giants further symbolizes the mounting frustration among Silicon Valley’s elite with the state’s growing regulatory environment.
Both Brin and Page stepped down from their leadership roles at Alphabet Inc.,
Google’s parent company, in 2019, but their connection to the region has been strong for decades.
They founded Google in 1998 while studying at Stanford University, and the company’s headquarters in Mountain View remains a symbol of Silicon Valley’s dominance.
More Moves: Other Billionaires Follow Suit
Brin is not the only high-profile billionaire to make changes in response to the proposed billionaires’ tax.
On New Year’s Eve, venture capitalist Peter Thiel, worth $25.9 billion, revealed that his private investment firm had opened a new office in Miami, while David Sacks, another prominent investor, moved his office to Austin, Texas.
Sacks shared his predictions for Silicon Valley’s decline on social media, stating that cities like Miami and Austin would soon take the place of New York and San Francisco as financial and tech hubs.
Meanwhile, Silicon Valley investor Chamath Palihapitiya, who is valued at approximately $1.2 billion, called Brin’s exit a “complete and total unforced error.”
He expressed his belief that California’s billionaires were on the verge of fleeing in large numbers, which could ultimately destabilize the state’s budget.
He warned that in order to address the potential shortfall, the state would either need to reduce government waste or increase taxes on the middle class.
Governor Newsom Weighs In
California Governor Gavin Newsom has been vocal in his opposition to the proposed billionaires’ tax, acknowledging that wealthy residents have the ability to relocate easily.
In a statement in December, Newsom commented, “People have this simple luxury, particularly people of that status.
They already have two or three homes outside the state.”
However, Newsom has also emphasized the need for pragmatism when it comes to keeping billionaires in California.
He warned that isolating the state from its competition, both domestically and internationally, could have significant economic consequences.
The Bigger Picture: What Does This Mean for California?
While it remains uncertain whether the billionaires’ tax will gain enough traction to pass into law, the moves made by Brin, Page, and others signal a potential shift in the power dynamics of both Silicon Valley and California as a whole.
The state has long been a hub for innovation and investment, but increasing taxes, regulations, and the cost of living have begun to push its wealthiest residents to look elsewhere.
As the situation unfolds, it’s clear that California’s future as a tech capital may be under threat.
For now, all eyes are on how the proposed tax will develop and whether more billionaires will follow in Brin and Page’s footsteps.
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