Peter Thiel, a venture capitalist, is reportedly exploring options to spend more time outside California and may establish an office for his investment firm, Thiel Capital, in another state. Similarly, Larry Page, co-founder of Google, has indicated intentions to leave California by the end of the year, with three companies linked to him filing incorporation documents in Florida.

The proposed wealth tax, which would require California residents with assets exceeding $1 billion to pay a one-time tax of 5% of their wealth, is being pushed by the Service Employees International Union-United Healthcare Workers West. This initiative aims to generate approximately $100 billion in revenue to support healthcare services and counteract federal funding cuts. However, California Governor Gavin Newsom has expressed opposition to the measure.

Chamath Palihapitiya, a tech investor, has voiced concerns about the potential consequences of the wealth tax, suggesting it could lead to an exodus of entrepreneurs from California, leaving the middle class to shoulder a greater tax burden. He has indicated that the wealthiest individuals may choose to relocate to states with more favorable tax conditions.

The trend of companies relocating from California to states with lower taxes has been observed, with notable figures like Elon Musk moving Tesla and SpaceX operations to Texas. Additionally, while California remains a hub for artificial intelligence companies, new data centers and infrastructure are being developed in states where resources such as land and electricity are more accessible.

Democratic Representative Ro Khanna, who represents parts of Silicon Valley, has defended the wealth tax, arguing that tax revenues have historically supported the growth of the tech industry. He emphasized the need for equitable wealth distribution, noting that a significant portion of Americans feel the American dream is unattainable due to rising costs in healthcare, childcare, housing, and education. Khanna also acknowledged the necessity for accountability in state tax spending, citing concerns over corruption.

Blake Scholl, CEO of Boom Supersonic, criticized the wealth tax proposal, arguing that it could lead to negative outcomes for the state and its residents, referencing the challenges faced by California's high-speed rail project as an example of mismanagement in public spending.