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Some of Silicon Valley's richest tech founders say they may leave California if a new billionaire tax becomes law.

The proposal would place a one-time 5% tax on people who own more than $1 billion in assets while living in the state, Yahoo reported. Critics warn the plan could push top innovators and their money out of California.

The proposed tax is backed by the Service Employees International Union–United Healthcare Workers West.

Supporters say the money could help fill gaps in health care funding if federal dollars are reduced.

The tax would affect about 200 Californians and could raise around $100 million, according to supporters.

But many tech leaders say the cost would be too high. Palmer Luckey, cofounder of defense technology company Anduril Industries, spoke strongly against the idea on X.

He said the tax would force founders to sell large parts of their companies just to pay the bill.

Luckey explained that he already paid hundreds of millions of dollars in taxes from selling his first company and used what was left to start Anduril, which now employs about 6,000 people.

"If this passes, founders like me will have to come up with billions of dollars in cash," Luckey wrote, adding that the money would go toward what he called wasteful spending.

Other well-known billionaires are also considering leaving. A New York Times report said Google co-founder Larry Page and investor Peter Thiel are weighing moves out of California.

Wealthy Californians Eye Exit Ahead of 2026 Tax Trigger

According to FoxBusiness, Page could face a tax bill of about $12 billion, while Thiel, worth roughly $27.5 billion, could owe more than $1.2 billion.

If voters approve the measure, it would apply to anyone living in California on Jan. 1, 2026. A person with $20 billion in assets on that date would owe $1 billion, paid over five years.

Because of this, some wealthy residents are making plans to change where they live before the deadline.

Investor Bill Ackman also warned the tax could hurt the state. He said entrepreneurs might leave, taking jobs and tax revenue with them. "California is on a path to self-destruction," Ackman wrote.

California Gov. Gavin Newsom has said he does not support the billionaire tax. While he urged people not to panic, he acknowledged growing concerns about wealth inequality.

State analysts have warned that if even a small number of billionaires leave, California could lose hundreds of millions of dollars in yearly tax revenue.

As one tax advisor put it, wealthy residents can move more easily than anyone else. "Those golden geese have wings," he said.

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Silicon Valley, Tax