‘The Big Money Show’ panel reacts to the flight of billionaires from California as Gov. Gavin Newsom’s proposed wealth tax sparks backlash and migration to the red state.
Billionaire Pierre Thiel is helping fight the so-called billionaire tax ballot measure that California voters could get to vote on this fall.
Thiel donated $3 million to the California Business Roundtable, an advocacy group that opposes policies it considers anti-business. The donation was first reported by The New York Times, citing a disclosure.
The Times noted that while the donation is not specifically aimed at efforts to oppose the proposed wealth tax, the group is expected to be among those leading the fight against the measure and the funds will contribute to its broader goals.
The proposal, known as 2026 Billionaire tax Act, would amend the California state constitution to impose a one-time tax of up to 5 percent on taxpayers and trusts with covered assets valued at more than $1 billion.
NEWSOM DECLARES CALIFORNIA FORCE TAX ‘REALLY HARMFUL’ AS BILLIONAIRES MOVE MONEY, BUSINESSES OUT OF STATE
Peter Thiel, co-founder of PayPal, Palantir Technologies and Founders Fund, donated to an advocacy group opposing the California billionaires tax measure. (Marco Bello/Getty Images)
These covered assets can include businesses, securities, artwork, collectibles and intellectual property, although real estate, pensions and some retirement accounts are exempt.
It would apply retroactively to California residents starting Jan. 1, and the tax would be due in 2027 and taxpayers could spread out their payments over five years.
If the proposal is adopted, 90% of tax revenue would be allocated to health care while 10% would go to food aid or education-related programs. Tax revenues would be exempt from California’s constitutional requirements for school funding, budget reserves and state spending limits.
CALIFORNIA BLEEDING TAX PROPOSAL 1,000 BILLIONAIRES FLEE
California Governor Gavin Newsom has expressed opposition to the billionaires’ tax proposal, arguing it would harm the economy. (Brandon Bell/Getty Images)
Supporters of California’s billionaire tax measure are collecting the nearly 900,000 signatures needed for the measure to pass. The measure is supported by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), as well as some Democratic lawmakers.
The billionaires’ tax proposal drew bipartisan criticism from California’s top Democrat, Gov. Gavin Newsomexpressing opposition to the proposal.
Newsom told Politico In an interview Monday, he expressed concern about reports that wealthy California residents were moving money and businesses out of the state and warned that it would hurt the economy and drive away investment.
“The evidence is there. The impacts are very real – not just substantial economic impacts in terms of revenue, but also start-ups, indirect impacts of… people questioning long-term commitments, medium-term commitments,” he continued. “This is not what we need right now, in a time of so much uncertainty. Quite the contrary.”
Billionaires Make Strategic Moves Out of California Ahead of Proposed Wealth Tax
Google co-founder Sergey Brin reportedly among billionaires leaving California. (Lionel Hahn/Getty Images/Getty Images)
Newsom added that while he has publicly supported a progressive tax structure, he believes the proposed tax on billionaires “makes no sense” and is “really harmful to the state.”
The provision making the wealth tax retroactive to apply to individuals who were California residents since January 1, 2026, this has reportedly led to several billionaires and business figures moving out of state.
Public documents reviewed by Fox News Digital from the California Secretary of State’s office show several business entities linked to the Google co-founder. Larry Page were moved out of state in December. He also reportedly purchased two properties in Miami valued at $73.4 million.
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Oracle Chairman Larry Ellison sold his San Francisco mansion for around $45 million, while the New York Times reported that the Google co-founder Sergei Brin and Thiel moved certain business operations out of California.
FOX Business’ Kristen Altus and Alex Nitzberg contributed to this report.
