Steven Spielberg Joins Billionaire Exodus from California Over Proposed Wealth Tax
Hollywood legend Steven Spielberg has become the latest billionaire to exit California, purchasing a residence in New York City's iconic San Remo co-op overlooking Central Park. This move aligns with a growing trend of high-net-worth individuals, including Meta's Mark Zuckerberg and Google co-founder Sergey Brin, departing the Golden State.
The Proposed Billionaire Tax Act
The exodus appears timed with the proposed Billionaire Tax Act, which would impose a one-time tax of five percent on assets for residents with a net worth exceeding $1 billion. If passed in a November vote, the tax would retroactively apply from January 1, 2026, and include stocks, art, and intellectual property in asset calculations.
Proponents argue the tax is essential to fund state services like healthcare and education, leveraging California's large billionaire population. However, opponents warn it could drive wealthy residents to sell company shares or leave entirely, potentially impacting the state's economy.
Spielberg's Move to New York
Spielberg's spokesperson, Terry Press, stated the primary reason for his relocation was familial, emphasizing a desire to be closer to children and grandchildren in New York. Press declined to comment on Spielberg's stance regarding the tax proposal.
The director and his wife, Kate Capshaw, have moved into the exclusive San Remo co-op on Central Park West, a building historically home to celebrities like Bono, Mick Jagger, and Tiger Woods. Residences there range from $5 million to $25 million, underscoring the luxury of their new abode.
Other High-Profile Departures
Mark Zuckerberg and his wife, Priscilla Chan, have acquired a $150 million waterfront mansion on Indian Creek Island in South Florida, joining other elites like Jeff Bezos. Zuckerberg's representatives also declined to comment on the tax implications.
Venture capitalist Peter Thiel and Google co-founder Larry Page are reportedly planning similar moves, with Page's companies filing incorporation documents in Florida. California, home to over 80 billionaires on the Forbes 400 list, faces potential revenue losses if this trend continues.
Political and Economic Implications
The Service Employees International Union-United Healthcare Workers West supports the tax to offset healthcare cuts, while Governor Gavin Newsom opposes it, fearing economic repercussions. The debate highlights tensions between funding public services and retaining wealthy residents.
As billionaires like Spielberg seek havens in New York and Florida, California's proposed wealth tax could reshape its demographic and financial landscape, with long-term effects on state revenue and corporate investments.
