Billionaire developer Rick Caruso considered leaving California over a proposed one-time wealth tax on the state’s wealthiest residents. Possible destinations included Austin, Texas, as well as Miami, Coconut Grove and Palm Beach, Florida, the New York Post reported.
Caruso said he had hired lawyers and financial consultants to calculate how a potential move would affect his business and family.
“Given the financial impact, you have to at least think about it. You have to at least consider the possibility,” Caruso said.5% Wealth Tax
Proposition 40, known as the billionaire tax, envisaged a one-time levy of 5% on the wealth of California residents with a net worth exceeding $1 billion. The revenue was intended to be directed primarily toward healthcare, as well as education and food assistance.
The measure was put to a vote in the state’s elections on November 3, 2026. According to the Associated Press, voters rejected the proposal after a campaign in which opponents and supporters spent significant sums.
Opponents of the tax warned that it could lead to an exodus not only of personal wealth, but also of companies, investments and charitable funds. Supporters presented it as a way to fund healthcare programs amid a shortage of resources.
Caruso Stays for His Family
Ultimately, Caruso decided to remain in California. He said that he and his wife could not imagine living far from their children and grandchild.
“In the end, we decided that if we have to pay a large tax, we will pay the large tax, but we will have our family,” the billionaire said.Caruso warned that the potential departure of “several hundred billionaires” from the state would have broader consequences.
“When they leave, their businesses, teams, leadership, staff and employees leave with them, but most importantly, so does their philanthropy,” he said.Following the rejection of Proposition 40, the tax will not take effect. The vote leaves open the debate in California over whether taxing accumulated wealth can generate new revenue without accelerating the relocation of the wealthiest residents and the companies connected to them.
Sources: apnews.com, ameriledger.com, rbc.ru