SACRAMENTO, Calif. — California tax authorities have spent decades pursuing wealthy residents who claimed they left the state. But if voters approve a controversial billionaires tax next month, the Franchise Tax Board, one of the nation’s largest tax collection agencies outside Washington, will have to do so on an unprecedented scale: determine which billionaires still live in California, assess much of their global assets and collect a tax expected to raise about $100 billion.
Billionaires have every reason – and ample resources – to fight back, and they have made it clear that they will not part with their money voluntarily.
Sergei Brinthe billionaire co-founder of Google, began cutting ties with the state late last year, as did his former business partner. Larry Page. Pierre Thielthe founder of PayPal and Palantir, said he was moving to Miami and cited California’s hostile tax environment as the main reason. Auto loan magnate Don Hankey was picked up and headed to more favorable tax climes in Nevada, telling the media on his way out that he felt like he was “no longer wanted.”
Some of the state’s top tax lawyers say they’ve helped at least a half-dozen other non-high-profile billionaire clients leave the state.
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