Additional Coverage:
- A Hollywood billionaire has quietly left California for New York as a proposed tax spooks the rich (marketrealist.com)
Hollywood Heavyweights Flee Golden State as Proposed “Billionaire Tax” Looms
Los Angeles, CA – A proposed wealth tax in California, targeting individuals with assets exceeding $1 billion, is reportedly prompting a quiet exodus of some of the state’s wealthiest residents, including prominent figures from the entertainment and tech industries. While the “One Big Beautiful Bill” enacted under the previous administration significantly cut taxes for the rich, new state-level proposals are leading many to seek greener, or rather, less-taxed pastures.
Oscar-winning filmmaker Steven Spielberg is the latest high-profile name rumored to be among those relocating. On January 1, Spielberg and his wife, Kate Capshaw, officially became residents of a co-op on Central Park West in New York City. Concurrently, Spielberg’s production company, Amblin Entertainment, also shifted operations away from Hollywood on the same day.
The timing of these moves has fueled speculation that Spielberg’s decision is linked to California’s proposed 5% wealth tax, slated to take effect in 2027 if it qualifies for the November ballot. With a net worth estimated at $7.1 billion, Spielberg would face an approximate $355 million tax burden under the proposal, which is supported by the Service Employees International Union and would allow payments to be spread over five years.
However, Spielberg’s spokesperson, Terry Press, has denied these speculations, stating that the move is purely for family reasons. “Steven’s move to the East Coast is both long-planned and driven purely by his and Kate Capshaw’s desire to be closer to their New York-based children and grandchildren,” Press told The Los Angeles Times.
Spielberg is not alone in his reported relocation. Google co-founders Larry Page and Sergey Brin, and Meta CEO Mark Zuckerberg are also among the wealthy Californians reportedly exploring new domiciles in states like Florida and Texas, which lack similar wealth tax proposals. Venture capitalist David Sacks announced on December 31 his intention to move his office to Austin, Texas, while PayPal co-founder Peter Thiel revealed plans to invest in a new space in Miami.
The proposed wealth tax, if enacted, is projected to generate nearly $100 billion, primarily earmarked for healthcare and educational initiatives. However, the potential for a mass departure of California’s more than 200 billionaires raises concerns about the state’s revenue stability.
California heavily relies on taxes from its affluent citizens, particularly capital gains and stock-based compensation. A significant exodus could destabilize the state’s financial framework, a concern that has already polarized Democrats and become a point of contention in the 2026 gubernatorial race to succeed Gavin Newsom.