Chamath Palihapitiya, a Canadian‑American billionaire of Sri-Lankan origin, is considering moving out of California. He is among several rich entrepreneurs worried about the Blue state’s business environment and proposed tax policies. Palihapitiya has said California’s political and financial situation is making innovators and founders think about relocating, especially to Red states like Texas, which are seen as more business-friendly.The 49-year-old became known as a senior executive at Facebook before starting the venture capital firm Social Capital in 2011. He has invested in technology, healthcare, and artificial intelligence projects. He also helped popularise SPACs, which take companies public, and co-hosts the All-In podcast, discussing economics and public policy.
What is the California ‘billionaire tax’ that is driving rich people out?
Recently, Palihapitiya joined other Silicon Valley figures in criticising a proposed California wealth tax that could go to voters in November 2026. The tax would charge 5 per cent on the total assets of residents worth over $1 billion. Supporters say it could fund public services, but critics claim it hurts the state’s economy and makes wealthy residents go away.In a post on X, Palihapitiya said the tax could cause “an exodus of the state’s most talented entrepreneurs who can and will choose to build their companies in less regressive states.” He claimed that people he knew, with a combined net worth of $500 billion, have already left California. He added that if the wealthiest leave, “all that will be left behind is the middle class,” which could face higher taxes.The comments come as California’s tech sector faces questions about its future. Governor Gavin Newsom and other officials have criticised the wealth tax as harmful to the economy, but supporters continue to push for it.Several other billionaires are considering leaving or have already moved. Tesla CEO Elon Musk warned that the proposed wealth tax could make him relocate his own wealth and operations out of the state. Peter Thiel, the tech investor and co‑founder of PayPal, has hinted that a wealth tax would make California less attractive and could influence where he lives and invests.
