Venture capital investor John Doerr has backed some of the world’s most successful entrepreneurs, including Jeff Bezos and the two founders of Google, Larry Page and Sergey Brin – who are cutting ties with California
Sergey Brin and Larry Page, the co-founders of Google, are reducing their ties to the North American state where they built their fortunes. Peter Thiel is doing the same. Silicon Valley billionaires are preparing to flee California — and its new wealth tax.
For nearly three decades, Google has been deeply embedded in the legend of Silicon Valley.
Em 1998, Larry Page e Sergey Brintwo graduate students at Stanford University, created a search engine that would change the world, in a friend’s garage in Menlo Park, California. Google was born there.
Over time, the company founded at the time by the two visionaries became a colossus of almost 4 billion dollarshelping to consolidate the Northern California region as the global epicenter of the internet industry.
Now Brin and Page are cutting some ties with the state where they made their fortunes.
According to documents consulted by , in the 10 days before Christmas, a holding linked to Sergey Brin, 52, terminated or transferred out-of-state 15 California companies that oversee some of its business interests and investments. Seven of these companies transferred to Nevada, the newspaper says.
Brin is joining Larry Page, also 52, in reducing his presence in California. More than 45 limited liability companies of California associated with Page filed documents last month to become inactive or to transfer out of state.
According to a deed consulted by the Times, a trust fund with links to Page this week he also acquired a mansion worth 71.9 million dollars in the neighborhood of Coconut Grove, em Miami. Another entity run jointly by Brin and Page moved from California to Nevada on Christmas Eve.
The decrease in Google founders’ connections to California appears to be the result of the potential impact of a measure proposed for referendum recently, which can affect the state’s wealthiest residents.
Presented by a healthcare union, the measure provides that Californians with assets exceeding one billion dollars are required to pay a single tax equivalent to 5% of your assets.
If the measure gathers enough signatures to reach a statewide referendum in November and is approved, will apply retroactively to any person who lived in the state on January 1st. Those covered would be five years old to pay the new fee.
The potential wealth tax has already taken some billionaires from California to establish more calls out of state. Last month, venture capitalist Peter Thielwhich could have to pay more than $2 billion if the new tax is approved, announced that it has opened an office for its family investment firm in Miami.
Also David Sackstechnology investor and White House adviser on artificial intelligence and cryptocurrencies, opened a new office for his venture capital firm, Craft Ventures, in Austin, no Texas.
But the movements of Brin and Page stand out due to the high value of their combined assets, which total more than 518 billion dollarss, according to Forbes estimates, but also due to the way they are intimately identified with California.
Although both stepped away from the day-to-day management of Google and its parent company, Alphabet, in 2019, they remain on the company’s board of directors. Brin and Page still maintain ties to California, including properties throughout the state, but It is unclear how long they will spend in the state. this year.
Previously reported the purchase of Page’s home in Miami and released some details about the transfer of Page and Brin’s companies.
The referendum initiative, which was proposed by the Service Employees International Union-United Healthcare Workers West to compensate for budget cuts federal that will affect California’s healthcare systemraised a wide spectrum of reactions.
The governor Gavin Newsom classified the measure as a bad policyarguing that will lead billionaires to simply move to states with more favorable taxes.
The Democratic Representative Ro Khannawhose constituency includes part of Silicon Valley, defended the initiative, attracting criticism from investors and businesspeople in the area of technology — who are already discussing the financing an opponent to your place.
There are those who argue that the tax can alienate businesspeople and investors of California, and stifle innovation in the state. Reid Hoffmanthe billionaire co-founder of LinkedIn and resident of Silicon Valley, says the measure is “a horrible idea” that could force founders and executives to sell shares in the companies they run simply to comply with tax obligations.
“Poorly designed taxes encourage evasioncapital flight and distortions that ultimately raise less revenue,” Hoffman wrote on social media on Wednesday.
Jensen Huangexecutive chairman of Nvidia and one of the richest men in California, is one of the few billionaires who has publicly said he accepts wealth tax. “We choose to live in Silicon Valley and whatever taxes they want to apply, so be it“, he said in an interview with Bloomberg.
Suzanne Jimenezchief of staff of the Service Employees International Union-United Healthcare Workers West, considers that the idea that there will be a exodus of billionaires from California is an exaggeration.
“The overwhelming Most billionaires chose to remain in California after the January 1 deadline,” Jimenez said. “Only a very small percentage left before the deadline, despite weeks of alarmist arguments claiming that a modest tax would trigger a mass departure.”
If the tax is approved, it will soon be seen whether the billionaires who will have to pay it consider it modesto — and how many, when the time comes to part with 5% of their assets, will continue to choose to remain in California. But, naturally, since the tax is retroactive, the money will already be on its way to the state coffers.
