Moderates and Republicans frequently lament California’s decline. While the state has wonderful beaches, mountains, great weather, and a robust innovation ecosystem, the politics have been a disaster for many years. High taxes, dilapidated infrastructure, and numerous allegations of government-backed fraud have helped make the Golden State the part of the country most people are fleeing. A recent proposal to impose a confiscation tax has prompted multiple affluent individuals to leave the state, and others are planning to do so.
Grow California, a 501(c)(4) tax-exempt entity, is a recently launched advocacy group that aims to alter the trajectory of California to a more effective government that supports entrepreneurship, economic growth, and moves away from its high tax trend that is undermining the state. The organization was co-founded by two well-known crypto investors/entrepreneurs, venture capitalist Tim Draper and Ripple co-Founder Chris Larsen. The duo has seeded the initiative with $5 million each and raised an additional $40 million, according to reports.
The Grow California website explains its mission:
“We must keep California competitive through competent government and restore a system that actually works for the people funding it. The Golden State must continue to attract people from around the world to make it their home, build a business, have a family, and afford to stay for generations.
It’s time to restore California as an economic powerhouse through policies that spur innovation, create jobs, and protect livelihoods. We’ll hold Sacramento accountable so public investments actually benefit the communities that pay them.”
At the same time, reports indicate that proponents of higher taxes are fighting back. Politico reports that Lorena Gonzalez, president of the California Federation of Labor Unions, is planning a fight:
“…unions will continue to be the voice for all working people, and big tech billionaires will continue to be the voice for themselves.”
So the battle lines have been drawn. The big-government, high-tax, anti-economic-growth side, and the innovation/entrepreneurship group that believes a growing economy benefits everyone.
Meanwhile, California saw approximately 255,000 people flee the state in 2025. Many are leaving for no-income-tax states like Texas and Florida. Among the three states, these jurisdictions have the most robust economies in the country, led by California. But both Texas and Florida grew by more than double the national average in 2023, while California’s growth has slowed dramatically.
It is a truism that when a large employer leaves, it is difficult to replace those jobs and the economic impact, including the tax revenue generated by these firms. Detering entrepreneurship and investment could be a deathknell for a state.
Approximately 3% of all businesses headquartered in California relocated to another state in 2025 – an incredible statistic. The top destinations were Texas and Florida. Perhaps big tax advocates should rethink their strategy in light of the empirical evidence and actually seek to help working people.