According to Inc, PayPal co-founder Peter Thiel is setting up an office for Thiel Capital in Miami’s Wynwood neighborhood, a move spurred by California’s proposed billionaire tax. The lease was signed in December 2024, and Thiel has been registered to vote in Florida since March 2024. The California proposal, which could appear on the November 2026 ballot, would impose a one-time 5% tax on the net worth of residents with assets over $1 billion, excluding pensions and retirement accounts. It’s projected to raise about $100 billion over five years, starting in January 2027, with 90% of revenue allocated to healthcare. For Thiel, whose wealth is estimated at $26 billion, the tax would mean a bill of roughly $1 billion. The bill has prominent backers like Senator Bernie Sanders but has drawn fierce criticism from other Silicon Valley billionaires, including Google’s Larry Page, who is also reportedly considering leaving the state.
The California Exodus Begins
Here’s the thing: Thiel’s move isn’t a surprise, but it’s a massive symbolic blow. He’s not just renting a desk; he’s registered to vote there. That’s a permanent legal change of residence. It signals that for the ultra-wealthy, this isn’t just political posturing—it’s a serious financial calculation. And he’s not alone. The report mentions Larry Page is having the same conversations. When your earliest and most iconic tech investors and founders start packing their bags, it creates a chilling effect. It tells every aspiring entrepreneur and VC that maybe the center of gravity is shifting. Again. David Sacks, the venture capitalist, is already predicting a flight to Austin. So the threat of this tax, years before it could even become law, is already triggering the very exodus its critics warned about.
The Stakes Behind The Tax
Look, the proponents of this tax aren’t just pulling numbers from thin air. They’re targeting a very specific, almost unimaginable level of wealth to solve a very tangible, visible crisis. California has a quarter of the nation’s homeless population. The state is facing a healthcare funding cliff. The argument is simple: a one-time 5% levy on fortunes built, in many cases, on California’s infrastructure, talent pool, and market, could generate transformative revenue. Bernie Sanders calls it a “model to emulate.” The powerful SEIU-UHW union is behind it. The state’s own Legislative Analyst’s Office crunched the numbers. This is a serious policy push, not just progressive fantasy. But the counter-argument, voiced loudly by people like Bill Ackman, is that it will kill the golden goose. Can you have innovation without concentration of wealth? That’s the multi-billion dollar question.
A Preview of Political Wars To Come
This fight is a perfect microcosm of a national debate. It’s about inequality, the social contract, and state power. And it’s happening in the most dramatic way possible in the world‘s fifth-largest economy. The billionaires see it as a punitive, confiscatory measure that will drive out talent and capital. The supporters see it as a necessary step to address a society fracturing under its own disparities, as detailed in analyses like one from the Public Policy Institute of California. What’s fascinating is the timeline. The vote isn’t until late 2026. That gives us nearly two years of this—lobbying, threats, relocation announcements, and political campaigning. Peter Thiel’s Miami office, confirmed in a business wire release, is just the opening salvo. Buckle up.
