Billionaires Spielberg, Zuckerberg look outside of California amid wealth-tax proposal - Los Angeles Times

Los Angeles Times

by Seema Mehta

February 19, 2026

AI-Generated Deep Dive Summary

Billionaires Steven Spielberg and Mark Zuckerberg are considering moves away from California amid a proposed wealth tax targeting ultra-high-net-worth individuals. While some conservative millionaires have loudly blamed the state’s progressive policies and business regulations for their departures, neither Spielberg nor Zuckerberg has explicitly cited the tax as the reason for their relocations. Instead, both appear to be driven by personal family considerations: Spielberg moved to New York City to be closer to his children and grandchildren, while Zuckerberg is eyeing a luxury property in South Florida. The proposed 5% one-time wealth tax on California billionaires would raise approximately $100 billion for healthcare and education if passed. However, critics warn that such a measure could push wealthy individuals and businesses out of the state, potentially weakening its economy and tax base. This concern is not new; other tech moguls like David Sacks and Peter Thiel have already relocated their operations to states like Texas and Florida. The issue has sparked debate over residency rules in California, which are complex and depend on factors such as voting registration, primary residence, and social ties. If the tax passes, it would apply to those who qualify as California residents by 2026, but critics argue that wealthy individuals could easily avoid the tax by altering their residency status. This situation matters because it highlights the ongoing tensions between state policies aimed at addressing inequality and the incentives for the ultra-rich to leave in search of more favorable conditions. As the wealth tax proposal gains traction, it has already prompted some of California’s most influential residents to reconsider their ties to the state, potentially reshaping its economic and cultural landscape.

Verticals

newscalifornia

Originally published on Los Angeles Times on 2/19/2026