Full Breakdown
Billionaires Exit California Amid Proposed Wealth Tax
3/18/2026, 7:23:24 AM
Travis Kalanick's Move to Texas
Travis Kalanick, co-founder of Uber, confirmed his relocation to Texas on December 18, 2025, amid a growing trend of billionaires leaving California in response to a proposed wealth tax. In an interview on the tech talk show TBPN, Kalanick did not elaborate on his motivations for the move but indicated it was strategically timed before the new year. He stated, “I don’t know what’s so specific about December 18, but let’s just say it’s prior to January,” affirming his status as a primary resident of Texas.
Context of the Proposed Wealth Tax
The proposed California wealth tax aims to target approximately 200 billionaires residing in the state as of January 1, 2026. The tax is intended to fund healthcare, education, and food assistance programs. Advocates assert that the tax would be difficult to evade, as it encompasses worldwide assets. The Service Employees International Union-United Healthcare Workers West is spearheading the initiative, which still requires sufficient signatures to qualify for the November ballot. However, the proposal faces significant opposition, including from California Governor Gavin Newsom and legal experts who suggest that it would be challenged in court.
Trends Among California Billionaires
Kalanick is part of a broader trend among California's wealthy elite, many of whom have begun relocating or establishing new business operations outside the state. Notable figures such as Google co-founders Larry Page and Sergey Brin have shifted several companies out of California, while Mark Zuckerberg of Meta has reportedly invested in multi-million dollar properties in Florida. Additionally, filmmaker Steven Spielberg has moved to New York to be closer to family. This exodus reflects growing concerns among billionaires regarding California's tax policies.
Kalanick's New Ventures
In conjunction with his move, Kalanick announced the rebranding of his company, City Storage Systems, to Atoms, which focuses on developing specialized robots for mining and transportation. Kalanick, who has owned property in Austin for five years, describes himself as an “avid” water skier. His new startup, Atoms, includes several ventures, including the ghost kitchen company CloudKitchens, and is actively hiring for positions across the United States.
Criticism & Opposition
Critics of the proposed wealth tax argue that it could drive more billionaires out of California, further exacerbating the state's economic challenges. Legal experts have indicated that the tax may face significant hurdles if it proceeds, potentially leading to a protracted legal battle. The opposition highlights concerns about the implications of such a tax on the state's business environment and overall economic health.
Verbatim Quotes
- “I don’t know what’s so specific about December 18, but let’s just say it’s prior to January,” — Travis Kalanick, Co-founder of Uber
- “Their taxable wealth includes worldwide assets; therefore, they cannot avoid the tax by moving their assets outside of California,” — California Wealth Tax Proposal Website
This situation underscores the complex dynamics between taxation policies and the decisions of high-net-worth individuals, as California grapples with the potential consequences of its proposed wealth tax.
