Google founders Sergey Brin and Larry Page are relocating their ventures from California to Nevada. This shift is linked to a novel proposal for a one-time levy on billionaires, as discovered by the NYT.
Google co-founder Sergey Brin has begun moving some of his business entities out of California, following the lead of fellow company founder Larry Page. According to The New York Times, within 10 days before Christmas, several entities associated with Brin ceased operations in California or were re-registered outside the state.
Seven of these were transferred to Nevada, encompassing firms connected to the management of Brin’s superyacht and his stake in a private aviation terminal at San Jose International Airport. Previously, over 45 companies affiliated with Larry Page also filed paperwork to end operations in California or change their jurisdiction, the newspaper reports. Furthermore, a trust linked to Page acquired an estate in Miami for $71.9 million.
A joint structure managed by Brin and Page also “moved” from California to Nevada on Christmas Eve. According to Forbes, the combined wealth of the two Google founders exceeds $518 billion, making their actions particularly notable amidst debates on the state’s fiscal policies.
Experts attribute these moves to the proposition to implement a 5% special tax in California on the assets of billionaires with fortunes exceeding $1 billion. If the initiative is approved in the November referendum, the tax would apply retrospectively to state residents with a five-year payment deferral.
Despite the reduced corporate footprint, Brin and Page still possess real estate in California and remain board members of Alphabet, the publication states. A representative for Sergey Brin declined to comment to the publication, while Google and representatives for Larry Page did not respond to the newspaper’s inquiries.
Taxable property includes assets such as businesses, securities, stocks, intellectual property, collectibles, and other items, whereas real estate, retirement accounts, and certain types of holdings are excluded from the list, according to the California state authorities’ website. Proponents of the initiative believe it could generate approximately $100 billion to fund healthcare, education, and social programs, as noted in an expert opinion from local universities.
According to the Financial Times, the proposal currently requires gathering sufficient signatures to be placed on the ballot, but it has already sparked extensive discussion. Supporters view it as a means to address the budget deficit, while critics caution about a potential exodus of wealthy residents and investments from California.
Tesla founder Elon Musk expressed disillusionment with California back in 2020 and moved his business to Texas, citing high taxation as the reason for his decision.
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