California’s proposed billionaire wealth tax is driving Hollywood’s elite out of the state, with legendary filmmaker Steven Spielberg becoming the latest high-profile casualty of the Golden State’s runaway taxation agenda.
Story Snapshot
- Steven Spielberg purchased a New York City apartment as California prepares to vote on a 5% billionaire wealth tax targeting residents with a net worth exceeding $1 billion
- The tax would apply retroactively to anyone who was a California resident on January 1st, 2026, creating urgency for wealthy individuals to relocate
- Tech billionaires Mark Zuckerberg and Sergey Brin have similarly purchased properties outside California amid the tax proposal
- Governor Gavin Newsom opposes the wealth tax measure despite backing from healthcare workers’ unions seeking additional state funding
Hollywood Icon Exits California Tax Trap
Steven Spielberg, director of iconic films including Raiders of the Lost Ark, Jaws, and ET, has relocated to New York City with his wife Kate Capshaw. The timing coincides with California voters preparing to decide on a wealth tax measure in 2026 that would impose a one-time emergency 5% tax on billionaires.
While Spielberg’s spokesperson told the LA Times the move was “long planned” and motivated by proximity to their New York-based children and grandchildren, the relocation follows a concerning pattern of wealth flight from California.
Punishing Success With Retroactive Taxation
The proposed wealth tax represents yet another example of California’s progressive establishment targeting productive citizens who built their fortunes through hard work and innovation.
Healthcare workers’ unions advocate for the measure as a funding mechanism for state healthcare and education programs, essentially demanding that successful individuals subsidize government spending rather than addressing California’s chronic fiscal mismanagement.
The retroactive application to anyone who was a California resident on January 1st, 2026, demonstrates the predatory nature of this policy, leaving billionaires no choice but to flee before it takes effect.
Billionaire Exodus Accelerates Under Tax Threat
Spielberg joins tech entrepreneurs Mark Zuckerberg and Sergey Brin in purchasing properties outside California, as wealthy individuals relocate to South Florida’s “billionaire bunker.”
This exodus threatens California’s tax base and cultural industries, exposing the self-destructive consequences of progressive tax policy. When successful individuals leave, they take not only their personal wealth but also job creation, philanthropic contributions, and economic activity that benefits middle-class workers.
Governor Newsom’s opposition to the wealth tax suggests even some Democrats recognize the danger, though his past support for high-tax policies contributed to California’s current predicament.
Steven Spielberg leaves California for New York as wealth tax push spurs political battle https://t.co/t3WhcU8oNc
— FOX Business (@FoxBusiness) February 20, 2026
The broader implications extend beyond California’s borders. Other states considering wealth taxes should observe the immediate flight response from productive citizens.
When the government punishes success through confiscatory taxation, people vote with their feet. New York and Florida gain wealthy residents while California hemorrhages the entrepreneurial class that built Silicon Valley and Hollywood.
This represents a warning about the consequences of class-warfare taxation policies that prioritize government expansion over individual liberty and economic freedom.
California’s voters face a critical choice in 2026 that will determine whether the state continues down this destructive path or reverses course before permanent damage occurs.
