Crypto rich threaten to leave California after new tax: Is it a bluff?

Crypto billionaires in California are threatening to leave the state, but are they ready to make good on their promise, or is an impending wealth exodus more of a paper tiger?

Crypto billionaires are threatening to leave the state of California after a prominent trade union proposed a 5% assets tax on residents worth more than $1 billion.

The Service Employees International Union-United Healthcare Workers West proposed the new tax back in November 2025. The trade union suggested that the new tax would bring in up to $100 billion from 200 state residents, more than making up for federal funding cuts to California’s state healthcare program. The measure will require 850,000 signatures before it can be put on the ballot for a popular vote in the 2026 elections in November.

Prominent investors and billionaires based in California, such as PayPal co-founder Peter Thiel and Google co-founder Larry Page, have already threatened to leave. Others have argued that a billionaire exit could remove crucial sources of tax revenue for the state.

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