Peter Thiel watched California's radical leftists cook up their billionaire wealth tax plan.
Now Silicon Valley's elite are voting with their feet.
And Peter Thiel just made one move that left Ron DeSantis laughing at Gavin Newsom.
California's socialist experiment drives billionaires to the exits
Peter Thiel's investment firm opened a new office in Miami's Wynwood district on New Year's Eve.¹
Thiel Capital's announcement came just 24 hours before California's proposed wealth tax would trap billionaires in the state based on where they lived on January 1, 2026.²
The timing wasn't accidental.
California Democrats are pushing a ballot measure that would slap a one-time 5% tax on anyone worth more than $1 billion who lived in the Golden State as of January 1.³
For Thiel, who's worth $26.5 billion, that would mean a tax bill exceeding $1.2 billion.⁴
Google co-founder Larry Page is also scrambling to establish Florida residency before the January 1 deadline — his potential tax hit could top $12 billion.⁵
https://twitter.com/teddyschleifer/status/2006424579951177850?s=20
Three companies associated with Page already filed incorporation documents in Florida.⁶
The Service Employees International Union-United Healthcare Workers West claims the tax would raise $100 billion over five years to fund healthcare programs after federal budget cuts.⁷
But California's own Secretary of State admitted in the ballot measure summary that revenues could be wiped out by income tax losses in the "hundreds of millions of dollars or more per year" if the ultra-rich flee the state.⁸
Democrats just triggered the biggest wealth exodus in state history
Silicon Valley entrepreneurs aren't buying the union's sales pitch.
Palmer Luckey, founder of defense tech startup Anduril, warned the tax would force founders to sell chunks of their companies to pay for "fraud, waste, and political favors."⁹
"One market correction, nationalization event, or prohibition of divestiture and I am screwed for life," Luckey said.¹⁰
The tax hits unrealized gains — meaning startup founders with billion-dollar companies on paper but no actual cash would still owe hundreds of millions.
Venture capitalist Chamath Palihapitiya warned the tax would bankrupt California and trigger a mass exodus.
Bill Ackman called California "on a path to self-destruction."¹¹
Even celebrity attorney Alex Spiro fired off a warning to Governor Gavin Newsom on behalf of unnamed billionaire clients.
"Our clients have made clear they will permanently relocate if subjected to this tax," Spiro wrote.¹²
A Miami luxury real estate agent told the New York Times that at least five California billionaires already reached out about relocating to Florida.¹³
https://twitter.com/diddydocket/status/2006795632674222190?s=20
California is home to 45 of the world's 500 richest people — more than any other state.¹⁴
The combined wealth of those California billionaires tops $1.6 trillion.¹⁵
Silicon Valley's Democrat Congressman Ro Khanna mocked the exodus with sarcasm borrowed from FDR: "I will miss them very much."¹⁶
Khanna argued a 1% annual tax over five years wouldn't stop innovation.
But the numbers tell a different story.
California already lost a net $29 billion in taxable income to other states during the pandemic.¹⁷
The state hemorrhaged $5.6 billion to Texas alone.¹⁸
Wealthy millennials earning over $200,000 fled California faster than any other state between 2021 and 2022 — a net loss of 9,181 households.¹⁹
In 2021, households earning more than $150,000 made up 32% of all those leaving the Bay Area, up from 27.6% in 2019.²⁰
The exodus already hammered San Francisco's budget — the city saw a 649% net increase in residents moving out since March 2020.²¹
California Democrats are playing with fire.
The state depends on income taxes from the wealthy to fund everything from schools to healthcare.
Just the top 0.5% of California taxpayers account for 40% of state income tax revenues.²²
Losing even a handful of billionaires could blow massive holes in the budget.
But Sacramento keeps doubling down on punishing success.
Newsom publicly opposes the wealth tax, calling state-level wealth taxes impractical.²³
The Governor knows what happens when you treat job creators like ATM machines.
Companies have already bolted for Texas and Florida where taxes are lower and regulations lighter.
Elon Musk moved Tesla and SpaceX to Texas years ago.
Now the wealth tax proposal is accelerating the trend.
Thiel's new Miami office joins Founders Fund, his venture capital firm, which set up shop in Miami in 2021.²⁴
He bought an $18 million mansion in Miami's Venetian Islands in 2020.²⁵
And he changed his voter registration to Florida in March 2024.²⁶
The pattern is clear — billionaires are done subsidizing California's dysfunction.
They're voting with their feet.
And Democrats are about to learn that you can't tax people who no longer live in your state.
¹ Thiel Capital, "Thiel Capital Opens New Office in Miami," Press Release, December 31, 2025.
² Ibid.
³ California Legislative Analyst's Office, "New tax on the wealth of billionaires," Ballot Analysis, 2025.
⁴ Bloomberg Billionaires Index, December 2025.
⁵ Annie Gaus, "Peter Thiel opens Miami office as California billionaires prepare to flee over wealth tax," New York Post, December 31, 2025.
⁶ Ibid.
⁷ California Legislative Analyst's Office, Ballot Analysis.
⁸ Gaus, New York Post.
⁹ Palmer Luckey, X post, December 2025.
¹⁰ Ibid.
¹¹ Bill Ackman, X post, December 2025.
¹² Alex Spiro letter to Governor Gavin Newsom, December 2025.
¹³ New York Times, "Tech Billionaires Consider California Exit Over Wealth Tax," December 26, 2025.
¹⁴ Bloomberg Billionaires Index, December 2025.
¹⁵ Ibid.
¹⁶ Rep. Ro Khanna, X post, December 2025.
¹⁷ Jeff Bellisario, Bay Area Council Economic Institute, January 2024.
¹⁸ Ibid.
¹⁹ SmartAsset, "Wealthy Millennial Migration Report," 2024.
²⁰ Bay Area Council Economic Institute, Census Data Analysis, 2023.
²¹ California Policy Lab, "CalExodus: Are People Leaving California?" September 2020.
²² Ibid.
²³ Gavin Newsom, New York Times Dealbook Conference, December 2025.
²⁴ Thiel Capital Press Release.
²⁵ Katherine Li, "Thiel Capital opens new Miami office," Business Insider, December 31, 2025.
²⁶ Florida voter registration records, March 2024.
