California is planning a new one-time wealth tax on billionaires in 2026, sparking warnings of an “innovation exodus” from tech and crypto founders. This could lead to job and funding losses.

Investor Chamath Palihapitiya says California has already lost $200 billion in tax revenue due to wealthy founders moving out of state. This capital flight affects jobs, offices, and startup funding.

The 2026 “Billionaire Tax Act” proposes a one-time 5% levy on large fortunes, including startup shares and crypto holdings, potentially forcing founders to sell assets at bad prices.

Reports suggest Google co-founder Larry Page has already shifted LLCs to Florida due to its favorable tax environment, hinting at a potential flow of talent and money away from California.

Strict regulations and taxes could push crypto companies to run cleaner operations, but may also hinder new startups from competing. It’s important to stay informed and review setups in response to changing regulations.

Read more at Yahoo Finance: ‘Billionaire Tax’ Risks Web3 Exodus