Some of America’s richest are quietly leaving California — and there's one key reason behind it
Wealthy Americans have been enjoying a lot of benefits, including tax cuts, ever since Donald Trump started his second term as President. But California has proposed a 'wealth tax' that imposes a 5% tax on its billionaire residents. With 200 billionaires presently residing in the state, the state is expected to collect an estimated $100 billion in revenue, CNBC reported. However, the elite are planning a mass exodus to Miami to avoid a 'tipping point' when the imposition hits the real estate market. The Corcoran Group agent Julian Johnston told Fox News Digital that billionaires are closing deals ‘within seven days’ and moving to South Florida. "Then a couple more flew into Miami, bought properties, and closed within seven days," Johnston said.
"One client said, ‘You know, this could be like a $5 billion tax for me,’" Johnston recalled, and added, "So they’re moving because of that." He further revealed that he is working with three billionaires to move them from California to South Florida because of worries about a potential tax. He revealed that his wealthy clients were forced to acquire residency outside of California by renting or buying properties due to the urgency of potential losses associated with the tax. However, he warned that it might be risky to relocate on short notice. "Now that it's… January, into 2026, it has slowed down a little bit… So if you didn't buy or rent before the end of the year, it may be too late. It may apply to you no matter what now," he said.
Along with several significant founders and tech behemoths, Johnston refers to the billionaires he is collaborating with as "Palo Alto guys" who are new to Miami. He emphasized how Florida's culture has evolved over the past ten years, making it more desirable for long-term relocation. The absence of state income tax in the state, in contrast to other tax havens, is a major lure for elites who live there for more than 183 days a year. "Miami has a very outdoor lifestyle similar to California," Johnston explained, before adding, "I think that the climate suits them. I think there's a lot of security here. Politically, it's safe and economically, I mean, two of the largest capital projects in the country are in Miami right now."
According to industry analyst Johnston, this migration is unprecedented in both scope and speed. He predicts that Florida will grow significantly as a "boomtown," attracting new businesses and residents to improve its economic environment. As reported by Fox News Digital, nearly 900,000 signatures are being gathered by proponents of the California billionaire tax bill in order to get it on the ballot. The proposal, which is supported by SEIU-UHW and a few Democratic lawmakers, calls for a five-year payment plan for a retroactive tax that would go into force on January 1, 2023, and be payable in 2027. If approved, the cash will not be subject to state constitutional funding limitations because 90% of it will go toward healthcare and 10% will support food or education initiatives.
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