Why Silicon Valley is really talking about fleeing California (it’s not the 5%)

The article explains that the primary concern driving Silicon Valley founders to consider leaving California is not the proposed 5% wealth tax itself, but how it would be applied. The tax targets the value of founders' control in companies, not just their actual equity ownership. For example, Larry Page controls about 30% of Google's voting power but owns only about 3% equity; under the proposal, he would owe taxes on the larger control stake, potentially resulting in enormous tax bills. This could force founders, especially those in private startups, to pay taxes on unrealized gains, which is particularly burdensome given the difficulty of accurately valuing private shares. Although the proposal allows for deferral accounts and alternative appraisals, these measures offer limited relief and come with risks of penalties if valuations are disputed. The tax initiative, pushed by California’s health care union to offset federal Medicaid and ACA subsidy cuts, aims to impose a one-time 5% tax on individuals worth over $1 billion, potentially raising