California Gov. Gavin Newsom acknowledged that the state’s proposed wealth tax is "bad economics." Newsom said he feels vindicated in opposing the proposed wealth tax after reports showed some of California’s wealthiest residents moving money and businesses out of the state, warning the measure would damage the economy and drive away investment. "This is my fear," Newsom said in a Politico interview on Monday. "It’s just what I warned against. It’s happening." "The evidence is in. The impacts are very real — not just substantive economic impacts in terms of the revenue, but start-ups, the indirect impacts of … people questioning long-term commitments, medium-term commitments," he continued. "That’s not what we need right now, at a time of so much uncertainty. Quite the contrary." LARRY PAGE DROPS $173M ON MIAMI MANSIONS AMID CALIFORNIA BILLIONAIRE EXODUS TREND AS WEALTH TAX LOOMS While the initiative has not yet qualified for the November 2026 ballot, the proposed measure — backed by the Service Employees International Union–United Healthcare Workers West — would impose a one-time 5% tax on the net worth of California residents with assets exceeding $1 billion. The tax would be due in 2027, and taxpayers could spread payments over five years, with interest, according to the Legislative Analyst’s Office. If approved by voters, the measure would apply to anyone who was a California resident on Jan. 1, 2026. Because of that provision, several prominent business figures and billionaires have reportedly relocated or restructured holdings outside the state. That includes Google co-founder Larry Page. Public filings reviewed by Fox News Digitalfrom the California Secretary of State’s Office show that several business entities linked to Page were relocated out of the state in December. He also reportedly purchased two Miami properties valued at about $73.4 million. Oracle Chairman Larry Ellison sold his San Francisco mansion for about $45 million, while The New York Times reported that Google co-founder Sergey Brin and venture capitalist Peter Thiel have shifted some business operations out of California.
