Venture capitalist Chamath Palihapitiya warns California lost $1 trillion as billionaires flee proposed wealth tax, threatening state budget and economy.

Venture capitalist Chamath Palihapitiya says California’s proposed billionaire tax is accelerating an exodus of ultra-wealthy residents, a shift he argues will worsen and not solve the state’s budget deficit.

Palihapitiya, who has been tracking capital flight from the Golden State, said California has so far lost an estimated $1 trillion.

“We had $2T of billionaire wealth just a few weeks ago. Now, 50% of that wealth has left – taking their income tax revenue, sales tax revenue, real estate tax revenue and all their staffs (and their salaries and income taxes) with them,” Palihapitiya wrote on X on Sunday.

Even as the measure remains under consideration for the November statewide ballot, some of Silicon Valley’s most prominent figures warn it could trigger an exodus of founders and capital.

Source: California wealth tax proposal hemorrhages $1T as billionaires flee