Larry Page and Sergey Brin, the co-founders of Google, have begun to retreat from California. This state has consistently been tied to their trailblazing tech enterprises. The recent moves show that billionaires are clearly on the lookout for alternatives outside of their home state. This trend is accelerating among the ultra-wealthy as they react to the proliferation of new tax measures.
Both Page and Brin, who co-founded Google in September 1998, still personally own homes in California. Yet, their recent actions would suggest they are beginning to turn a corner. A proposed ballot measure, scheduled for the November ballot, seeks to impose a one-time 5% tax on individuals with a net worth exceeding $1 billion. This measure would retroactively apply to anyone who resided in California as of January 1 of this year if it passes.
In an unprecedented step, Larry Page has seen 45 such LLCs made inactive or move out of state in recent months. This decision is likely a strategic move in reaction to the upcoming tax bill and its expected attack on wealthy taxpayers. That’s why this week, an investment trust connected to Page was in the news for purchasing a $71.9 mansion in Miami. This purchase could be indicative of him preparing for a permanent change in residence.
These LLCs are the core infrastructure for managing Page’s complex and varied assets. They manage his superyacht fleet and his very successful, but of course, private terminal at San Jose International Airport. Tech titans are tweeting through an unprecedented monetary shift. They can move their real estate holdings and corporate HQs to tax havens of their choice.
California, of course, still has years of built-up dominance in tech but Sergey Brin seems to be pivoting as much as anyone to the new economic reality. As collateral billionaires, Page and Brin are closely watching the outcome of the proposed tax initiative. This legislation could have a profoundly positive impact on how they deploy their wealth.
The proposed ballot measure has heightened conversations among wealthy Californians about the growing taxation burden on the state. Now, numerous wealthy people are reconsidering where they live and where they do business because of such policy.