Tech billionaires Peter Thiel and Larry Page are reportedly making preparations to leave California amid concerns over a potential wealth tax. Sources told The New York Times that Thiel has considered spending more time outside of California and establishing an office for Thiel Capital, his Los Angeles-based investment firm, in another state. Page, meanwhile, has reportedly discussed leaving the state before the end of the year, and three limited liability companies linked to him have filed documents to incorporate in Florida.

The potential wealth tax, which would tax the assets of California's wealthiest residents to fund healthcare initiatives, has sparked debate about its potential impact on the state's economy. While the specific details of the proposed tax and its potential revenue generation remain unclear, proponents argue it could provide significant funding for essential public services. Critics, however, fear it could trigger an exodus of high-net-worth individuals and businesses, ultimately shrinking the state's tax base.

The news of Thiel and Page's potential departure highlights the ongoing debate surrounding wealth taxes and their impact on economic activity. California, known for its high taxes and cost of living, has long faced concerns about businesses and individuals relocating to states with more favorable tax environments. A mass departure of high-net-worth individuals could negatively impact the state's economy, potentially affecting sectors ranging from real estate to venture capital.

Peter Thiel is a prominent venture capitalist and co-founder of PayPal and Palantir Technologies. Larry Page co-founded Google, now Alphabet Inc., one of the world's largest technology companies. Their potential departure would represent a significant loss for California's tech industry, which has long been a major driver of economic growth and innovation.

The future of the proposed wealth tax in California remains uncertain. If enacted, it could lead to further departures of wealthy individuals and businesses, potentially impacting the state's long-term economic health. The situation underscores the complex interplay between taxation, economic incentives, and the location decisions of high-net-worth individuals and companies. The debate also raises questions about the role of artificial intelligence and automation in wealth creation and distribution, and how these technologies might influence future tax policies.