The California confiscation tax is doing wonders for at least one state. That would be Florida.
The confiscation tax is designed to take money from wealthy residents by taxing unrealized gains and total wealth. As California remains an economy driven by innovation and entrepreneurship, wealthy founders and investors may face significant penalties, prompting many to question their California residency.
According to an article on WSJ.com, Facebook (Meta) founder Mark Zuckerberg and his wife, Priscilla Chan, have purchased a 2-acre estate in the posh Indian Creek community, previously owned by the founder of Jersey Mike’s. It is estimated that Zuckerberg probably paid between $150 million and $200 million for the new abode.
While the new home is costly, a breakdown available here explains how a change in residency is a great investment, as a $150 million mansion could save Zuck around $10 billion.
Zuckerberg’s name is being added to a long list of California refugees fleeing to the Sunshine State, which is known for its no-state income tax and business-friendly climate. And unlike California, where state finances are a mess, Florida’s political leadership is well known for efficiency and for operating below budget. Florida is so effective that it is considering eliminating property taxes for residents.
Billionaire investor Chamath Palihapitiya posted on X that California has now chased away wealth of around $2 trillion. As California has the highest state income tax at 13%, the confiscation tax is probably having the exact opposite effect than its creators intended. Palihapitiya predicts that the “lost tax revenues from these folks will have to be paid for by the middle class because they are the only group left in California large enough that you can tax to fill the hole.”
Another prominent billionaire, Bill Ackman ( who is not a California resident), was brief in his critique of California’s attempt to steal wealth: “California is toast. Self-immolation.”
One founder pointed out that the most successful tech founders of all time have now exited the “failed state of California,” while also predicting the next seizure of wealth will be by the millionaires living in the state.
“Democrats will eventually destroy the entire Californian economy, just like Communists destroyed the Russian economy.”
While Governor Gavin Newsom has opposed the confiscation tax, it is a direct-to-voter ballot initiative, and if it passes, there is little he can do to stop the senseless policy.
The “Wealth Tax,” as it is benignly labeled, was initiated by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW). The language was authored by a group of progressive academics at UC Berkeley, UC Davis, and the University of Missouri. They have defended the policy as “practical and fair” and necessary to address California’s budget shortfalls. It is unclear whether they have commented on the need to cut the state of California’s spending; the state has been accused of massive fraud and failed projects.
As of February 2026, the tax is in the signature-gathering phase and needs around 875,000 valid signatures by June 24, 2026. Polls indicate the confiscation tax has the support to become law.