Venture capitalist Chamath Palihapitiya has sounded the alarm over California’s budget following reports that Meta CEO Mark Zuckerberg is relocating to Florida. As per reports, Zuckerberg and his wife, Priscilla Chan, have bought a mansion in Indian Creek, one of South Florida’s most exclusive neighbourhoods.
The island, with around 41 homes, is also home to Jeff Bezos, Tom Brady, Carl Icahn, Ivanka Trump and Jared Kushner among others. Palihapitiya highlighted the potential fiscal impact of Zuckerberg’s exit in a post on X, saying: “With Zuck’s move to Florida, California’s total taxable wealth from billionaires has plummeted to well under $1T from over $2T just a few weeks ago.”
He criticised the state’s handling of the situation, pointing to Governor Gavin Newsom’s inaction. Palihapitiya wrote, “The loss of this tax revenue was totally avoidable but is now forever. All because Gavin Newsom stood motionless as this stupidly written bill, from a fringe union and a handful of socialist academics with an axe to grind, meandered its way into the public conversation without any action from him and freaked everyone out.”
Palihapitiya added that the departure of billionaires like Zuckerberg would shift the fiscal burden. “Now, for the rest of time, the lost tax revenues from these folks will have to be paid for by the middle class because they are the only group left in California large enough that you can tax to fill the hole,” he wrote in the post.
On Newsom’s leadership, Palihapitiya added, “He’s forsaken the middle class instead of managing the budget, managing the deficit, eliminating even a portion of California’s gargantuan waste and abuse. He could have done any of these things at any point over the past 7+ years. But he was silent. And now California’s budget will implode and he wants to run for President. Insane.”
Here’s Chamath Palihapitiya’s post:
With Zuck’s move to Florida, California’s total taxable wealth from billionaires has plummeted to well under $1T from over $2T just a few weeks ago.
The loss of this tax revenue was totally avoidable but is now forever. All because Gavin Newsom stood motionless as this stupidly… https://t.co/lJpzhTkMH6
— Chamath Palihapitiya (@chamath) February 10, 2026
What Is California’s 5% Billionaire Tax?
The Billionaire Tax Act, which could appear on California’s general election ballot this November, proposes a one-time 5% levy on the total wealth of state residents with a net worth of $1 billion or more. Unlike usual new taxes, which take effect after approval, this measure would apply to those who are California residents as of Jan. 1, 2026.
The proposal aims to generate substantial revenue from the state’s wealthiest residents, but it has sparked concerns that high-net-worth individuals could relocate to states with lower taxes.
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