Google co-founder Larry Page has relocated his family office to Delaware and purchased two Miami properties, totaling $173 million, in a move widely seen as an effort to avoid California's proposed one-time 5% tax on billionaires. The tax, known as Proposition 40, would apply to any billionaire residing in California on January 1, 2026. Page's December 2025 move to Delaware and subsequent Miami real estate acquisitions are reported to have cost him significantly less than the nearly $15 billion he might have owed under the proposed tax.
Proposition 40 has sparked intense debate. Supporters argue the tax would fund critical services like healthcare, food assistance, and education, targeting only the wealthiest Californians. Progressive figures, including Vermont Sen. Bernie Sanders, back the measure, emphasizing its one-time nature and oversight protections. However, opponents, including Gov. Gavin Newsom and the group Vote No On Prop 40, warn that the tax could harm the state's economy and budget by driving away wealthy residents.
Miami's appeal to billionaires extends beyond tax advantages. The city offers no state income or capital gains tax, a business-friendly environment, and an attractive climate and culture. Despite its high cost of living, Miami has become the second most expensive metropolitan area in the U.S., trailing only San Francisco. For billionaires like Page, investing in luxury properties in Miami is a relatively cost-effective way to avoid higher taxes.
The outcome of Proposition 40 remains uncertain, with voters expressing doubts about whether the tax will truly be a one-time measure targeting only billionaires. Regardless of the vote, the migration of billionaires to Miami could continue, driven by the city's tax benefits and lifestyle offerings.