Uber Founder Joins Billionaire Exodus from California Ahead of Wealth Tax
The former chief executive officer of Uber has become the latest billionaire to abandon California for Texas, as the liberal state prepares to implement a proposed wealth tax targeting its wealthiest residents. Travis Kalanick, aged 49, departed Los Angeles in December to establish a new life near Lake Austin, confirming his relocation during a recent podcast interview.
Kalanick's Texas Transition
Kalanick revealed his new address while discussing his robotics venture, Atoms, on The Business Podcast Network. "I'm a primary resident of Texas," he declared to hosts John Coogan and Jordi Hays, enthusiastically adding, "Lake life, hell yeah!" Although he purchased the lake house five years ago, Kalanick has now designated it as his main residence, spending every weekend there so far this year.
The business magnate, with an estimated net worth of $3.6 billion, moved on December 16, 2025, just weeks before California's billionaire tax deadline. This timing potentially allows him to avoid the impending levy, though he has not publicly stated this as his reason for relocating.
Growing Trend of Wealthy Departures
Kalanick joins a significant wave of affluent entrepreneurs and corporations exiting the West Coast. Tesla founder Elon Musk relocated himself and his businesses to Texas in 2020, criticizing California for becoming "complacent" regarding technology and innovation. Similarly, Chevron CEO Mike Wirth moved the company's headquarters to Houston at the end of 2024.
Other notable departures include Tom Boyle, CEO of Public Storage, who shifted the company's base from Glendale, California, to Frisco, Texas. Companies like Yamaha Motor Co and Playboy have also left California for other states, reflecting a broader trend of corporate migration away from the Golden State.
California's Controversial Wealth Tax Proposal
This exodus coincides with mounting opposition to California's proposed Billionaire Tax Act of 2026. The legislation, championed by Democratic Representative Ro Khanna, aims to impose a one-time tax of five percent on the assets of residents with a net worth exceeding $1 billion. The funds would support essential services such as healthcare, education, and childcare.
If passed in a November vote, the tax would retroactively affect billionaires living in the state from January 1, 2026, encompassing stocks, art, and intellectual property in asset calculations. California currently hosts more billionaires than any other state, with 225 individuals and over 80 Forbes 400 list members residing there.
Criticism and Concerns
Opponents of the bill warn that it could drive wealthy residents to sell large portions of their companies or leave the state entirely, taking their tax contributions with them. Reid Hoffman, co-founder of LinkedIn, has strongly condemned the proposal, describing it as "badly designed" in a social media post.
"Poorly designed taxes incentivize avoidance, capital flight, and distortions that ultimately raise less revenue," Hoffman argued. He emphasized the need to preserve Silicon Valley's innovation while supporting those who have not benefited from its prosperity, but asserted that the wealth tax is not the optimal solution.
Other billionaires have also taken preemptive measures. Google co-founder Larry Page, with a net worth of $144 billion, announced his exit from California ahead of the bill, relocating his businesses in late 2025 to meet exemption deadlines. His wife, Lucinda Southworth, has similarly moved her charitable interests out of the state.
Implications for California's Economy
The potential departure of high-net-worth individuals and corporations poses significant challenges for California's economy. As billionaires like Kalanick and Musk establish new bases in Texas, the state risks losing substantial tax revenue and economic influence. The debate over the wealth tax highlights ongoing tensions between progressive fiscal policies and the retention of wealth and innovation within California's borders.
With the November vote approaching, the outcome of the Billionaire Tax Act will likely shape future migration patterns and economic strategies for both California and competing states like Texas.
