Story perspectives

California's Wealth Tax: Innovation at Risk, Founders Consider Exit

1/17/2026

Summary

Story summary

California's proposed wealth tax would tax voting shares held by founders, not their wealth, risking miscalculation penalties.
Critics warn it could drive Google founders Larry Page and Sergey Brin to relocate, costing California over $1 trillion.
Supporters, including Congressman Ro Khanna (D-CA), say the wealthy will stay due to ties to the state.
Entrepreneurs fear harm to innovation and jobs as donations mobilize to oppose the measure before November.

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Story summary

California's proposed wealth tax would tax voting shares held by founders, not their wealth, risking miscalculation penalties.
Critics warn it could drive Google founders Larry Page and Sergey Brin to relocate, costing California over $1 trillion.
Supporters, including Congressman Ro Khanna (D-CA), say the wealthy will stay due to ties to the state.
Entrepreneurs fear harm to innovation and jobs as donations mobilize to oppose the measure before November.