Billionaire Peter Thiel is making a bold move, signaling a sharp rebuke to California’s brewing tax storm.

Thiel Capital, the investment firm of the PayPal co-founder, has secured a new office in Miami’s Wynwood district, as announced in a Wednesday press release, with reports highlighting his frustration over a proposed 5% wealth tax that could slap him with a $1.2 billion tab, the New York Post reported.

Thiel’s firm noted his deep ties to the Florida city, pointing out that he has owned a personal residence there since 2020. Founders Fund, a venture capital outfit he co-founded, has also operated an office in Miami since early 2021.

California’s Tax Plan Sparks Elite Exodus

This shift comes as Thiel, who still holds property in Hollywood Hills, joins a growing cadre of ultra-wealthy Californians eyeing the exit over the potential tax burden. Establishing residency elsewhere, like Florida, offers a shield against challenges from California’s Franchise Tax Board, according to tax experts.

The proposed legislation, needing roughly 870,000 signatures to land on the November 2026 ballot, aims to levy a one-time 5% tax on the assets of about 200 billionaires. Its goal is to refill health care coffers drained by federal funding slashes, as explained by the union pushing the measure.

Other heavy hitters, like former Facebook executive Chamath Palihapitiya and hedge fund titan Bill Ackman, have slammed the idea with fierce clarity. Ackman, though not a California resident, warned that such a policy would empty the state of its wealthiest contributors overnight.

Billionaires Draw Battle Lines Against Tax

Google co-founder Larry Page, facing a staggering potential $12 billion hit, has seen companies tied to him file incorporation papers in Florida to sidestep the tax. This calculated maneuver reflects a broader strategy among the elite to protect their fortunes from Sacramento’s reach.

Elon Musk’s attorney, Alex Spiro, delivered a pointed message to California Governor Gavin Newsom, who opposes the tax, urging him to quash it before the state bleeds capital. “Our clients have made clear they will permanently relocate if subjected to this tax,” Spiro declared on behalf of unnamed billionaire clients.

Thiel’s own actions speak louder than any statement, with his firm’s press release emphasizing a “significant presence” in Miami over recent years. That presence now looks like a fortress against a policy many see as punitive and shortsighted.

Tax Advocates Clash with Economic Reality

Supporters of the tax, led by SEIU-United Healthcare West, insist the 5% levy is a small price for billionaires to pay, dismissing fears of a mass departure as overblown. They project the measure could generate $100 billion over five years to bolster critical health programs.

Yet even the California Secretary of State’s ballot summary undercuts that optimism, admitting that income tax losses could reach hundreds of millions annually if the rich pack up. This isn’t a minor footnote; it’s a glaring flaw in a plan that assumes wealth stays put under pressure.

Thiel’s relocation signals a deeper unrest among those who’ve built California’s economic engine. Punishing success with a retroactive grab at assets hardly seems the way to keep innovation or capital rooted in the Golden State.

Will California Learn from Its Misstep?

Miami’s gain stands as California’s warning, with Thiel and others voting with their feet against a policy that feels more like a shakedown than a solution. If the state’s leaders ignore this exodus, they risk turning a tech and wealth hub into a ghost town of bad ideas.

The union’s argument that “fears of capital flight are overstated” rings hollow when the evidence is already walking out the door. Look no further than Wynwood’s newest tenant to see where this tax push leads.

California has long prided itself on dreaming big, but dreams turn sour when they’re funded by resentment toward achievement. Thiel’s move to Florida isn’t just a personal choice; it’s a loud critique of a system teetering on the edge of self-sabotage.