In a move that signals growing unease among California’s ultra-wealthy, Google co-founder Larry Page has reportedly established residency in Nevada, joining the exodus of tech billionaires leaving the Golden State. Multiple sources familiar with the situation confirm Page has purchased property in Lake Tahoe’s exclusive Nevada shoreline, effectively positioning himself beyond the reach of California’s proposed new wealth taxes scheduled for implementation in 2025.
Page, whose net worth hovers around $111 billion according to the Bloomberg Billionaires Index, becomes the latest in a growing list of tech elite to reconsider their California residency. This shift comes as the state legislature advances what critics have dubbed the “billionaire tax” – a groundbreaking measure designed to capture revenue from unrealized capital gains of the state’s wealthiest residents.
“This isn’t just about one billionaire’s relocation decision,” notes Marshall Goldsmith, tax policy analyst at Berkeley Economic Institute. “It represents a potential watershed moment in California’s relationship with its wealthiest taxpayers. When someone with Page’s resources and California roots decides to leave, it sends ripples throughout the entire high-net-worth community.”
The California Wealth Tax proposal, formally known as Assembly Bill 259, would establish a 1.5% annual tax on worldwide assets exceeding $1 billion beginning January 2025, expanding to include those with wealth above $50 million at a 1% rate by 2026. Crucially, the legislation includes a provision allowing California to tax former residents for four years after their departure – a clause seemingly designed precisely to prevent the type of exit Page is orchestrating.
State Assemblyman Alex Lee, the bill’s primary sponsor, defended the measure during legislative hearings last month. “For too long, the ultra-wealthy have played by different rules. This proposal simply asks them to contribute their fair share toward the infrastructure, education, and services that helped create their wealth in the first place.”
The stakes for California’s budget are substantial. The state’s Legislative Analyst’s Office estimates the wealth tax could generate between $15-20 billion annually once fully implemented, helping address persistent budget deficits that reached $68 billion this fiscal year. Governor Gavin Newsom, who initially expressed skepticism about wealth taxes, has softened his position as the state’s fiscal outlook worsened.
Page’s relocation strategy appears meticulously planned. By establishing Nevada residency well before the tax’s implementation date, he potentially circumvents the four-year “tail” provision. Nevada, with its zero state income tax and proximity to Silicon Valley, has increasingly become the destination of choice for California’s departing wealthy.
“What we’re witnessing is the predictable response to tax policy that targets a highly mobile population,” explains Catherine Rampell, senior fellow at Stanford’s Hoover Institution. “The question isn’t whether billionaires will respond to wealth taxes – it’s how many will leave and what that means for California’s long-term fiscal health.”
Page’s departure carries particular symbolic weight given his deep California roots. He co-founded Google with Sergey Brin while both were Stanford graduate students in 1998, building the company into the cornerstone of California’s tech dominance. Google’s parent company Alphabet remains headquartered in Mountain View, California, with over 45,000 employees in the state.
The wealth migration trend extends beyond Page. Elon Musk famously relocated Tesla’s headquarters from Palo Alto to Austin in 2021, while personally establishing residency in Texas. Former PayPal executive David Sacks, venture capitalist Keith Rabois, and numerous other high-profile tech figures have made similar moves to low-tax states in recent years.
Federal Reserve Bank of San Francisco data indicates California experienced net outmigration of approximately 340,000 residents between 2020 and 2023, with high-income earners disproportionately represented in that figure. The pandemic accelerated this trend by normalizing remote work arrangements, removing a key geographic tether for many executives and investors.
“The mobility of capital and talent represents the greatest challenge to progressive taxation models,” notes Jared Walczak, Vice President of State Projects at the Tax Foundation. “When taxpayers can vote with their feet, states face real constraints on tax policy regardless of the merits of any particular proposal.”
Proponents of the wealth tax dismiss concerns about billionaire flight, pointing to California’s continued economic advantages – world-class universities, established tech ecosystem, cultural amenities, and ideal climate. “The narrative about wealthy people fleeing California due to taxes is overblown,” argues Emmanuel Saez, economics professor at UC Berkeley who helped design wealth tax proposals. “The data shows most wealthy people remain rooted in place despite tax differentials.”
For California legislators, the wealth tax represents a calculated gamble. If enough ultra-wealthy residents follow Page’s example, the expected revenue windfall could fall short of projections. Yet inaction risks deepening the state’s structural budget deficits as traditional tax sources prove increasingly volatile.
As 2025 approaches, all eyes will be on whether Page’s departure represents an anomaly or the beginning of a more significant exodus. The outcome may reshape not only California’s fiscal future but also set precedents for wealth taxation efforts nationwide.
