A Hollywood billionaire has quietly left California for New York as a proposed tax spooks the rich
The rich in America are benefiting from Trump's One Big Beautiful Bill, which has cut taxes for them significantly. But the proposed wealth tax in different parts of the country has prompted them to find new ways to avoid paying more. Now wealthy Californians are making a move to places like Florida and Texas to avoid the planned 5% wealth tax on individuals with assets over $1 billion. Prominent personalities, including Google co-founders Larry Page and Sergey Brin, and Meta CEO Mark Zuckerberg, are reportedly leaving the Golden State as a result of this taxation proposal. Oscar-winning filmmaker Steven Spielberg has now joined the list of rich Californians who are relocating to New York as the wealth tax has led to a major political tussle.
On January 1, Spielberg and his wife, Kate Capshaw, officially became residents of the San Remo co-op on Central Park West, which has previously housed several celebrities. Additionally, Spielberg's production business, Amblin Entertainment, made a move away from Hollywood that same day. Spielberg's recent relocation to the East Coast is rumored to be related to the levy that would take effect in 2027. Supported by the Service Employees International Union, the proposal is expected to allow payments to be spread out over five years. However, it has not qualified for the November ballot. With a net worth of $7.1 billion, Spielberg would have had to shell out an estimated $355 million in taxes.
Meanwhile, his spokesperson, Terry Press, has denied the speculations by stating that the revered filmmaker has shifted base due to family reasons. "Steven’s move to the East Coast is both long-planned and driven purely by his and Kate Capshaw’s desire to be closer to their New York-based children and grandchildren," the spokesperson told The Los Angeles Times. The tax, if enacted, could raise almost $100 billion, mostly focusing on healthcare and educational initiatives. However, it has triggered a surge in tax evasion by the wealthy. Notably, venture capitalist David Sacks announced on December 31 that he would be shifting his office base to Austin, Texas, at the same time as Peter Thiel, a co-founder of PayPal, revealed he would be investing in a new space in Miami.
There would be lasting implications set by the levy since the state depends on taxes from its affluent citizens, such as capital gains and stock-based compensation; a mass departure of more than 200 billionaires from California would topple the state's revenue. Hence, this is one of the main reasons the planned billionaires' tax has polarized Democrats and fueled disputes in the 2026 governor's contest to succeed Gavin Newsom.
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