Larry Page, co-founder of Google, has begun shifting some of his business assets away from California as organizers pursue a proposed wealth tax targeting billionaires, according to a report by Business Insider. Page has reportedly reincorporated several of his business entities in Delaware, including his family office, Koop; his influenza research company, Flu Lab; his aviation company, Dynatomics; and his flying car startup, One Aero. A source told Business Insider that Page himself is no longer residing in California.

The move comes amid discussions surrounding a proposed tax initiative that could appear on the 2026 ballot. This initiative, if passed, would impose a 0.5% tax on individuals with assets valued at $1 billion or more. Proponents of the tax argue it would generate substantial revenue for the state, addressing budget shortfalls and funding public services. Opponents, however, contend that it could drive wealthy individuals and businesses out of California, ultimately harming the state's economy.

Other prominent figures in the tech industry have voiced concerns regarding the proposed wealth tax. David Sacks, Palmer Luckey, and Alexis Ohanian have all publicly spoken out against the ballot initiative, echoing fears of capital flight and reduced investment in California. The debate highlights a growing tension between the state's progressive tax policies and its efforts to maintain a thriving business environment.

The reincorporation of Page's business entities in Delaware could offer several advantages, including a more favorable corporate tax structure and greater flexibility in corporate governance. Delaware is widely recognized as a business-friendly state, attracting companies from various sectors due to its established legal framework and specialized court system for corporate disputes.

The potential impact of the proposed wealth tax on California's economy remains a subject of debate. While supporters emphasize the potential revenue gains, critics warn of unintended consequences, such as decreased tax revenue from departing individuals and businesses. The California Legislative Analyst's Office is expected to release an analysis of the potential economic effects of the proposed tax in the coming months, providing further insight into the debate. The initiative's future hinges on the success of organizers in gathering enough signatures to qualify it for the 2026 ballot and the subsequent vote by California residents.