Alphabet(US:GOOGL) Benzinga·2026-01-11 09:48Core Viewpoint - Ben Horowitz, co-founder of Andreessen Horowitz, argues that California's proposed wealth tax is an effective strategy to disrupt the Silicon Valley network effect, drawing parallels with Norway's entrepreneur exodus due to its unrealized capital gains tax [1][4][5]. Group 1: Impact of Taxes on Entrepreneurs - Norway's unrealized capital gains tax has led to a significant exodus of entrepreneurs, as they are unable to pay taxes on increased valuations of their private companies [2][3]. - In 2022, 261 residents with assets over 10 million kroner left Norway, followed by 254 in 2023, indicating a doubling of departures compared to pre-tax increase levels [6]. Group 2: California Wealth Tax Proposal - The proposed wealth tax in California targets high-net-worth residents to address state budget deficits and fund public services, raising concerns among tech industry leaders [6][7]. - Prominent figures, including LinkedIn co-founder Reid Hoffman, have criticized the wealth tax as poorly designed, suggesting it could undermine innovation in Silicon Valley [7]. Group 3: Reactions from Tech Leaders - The proposed tax has prompted some tech leaders, such as Larry Page and Sergey Brin of Alphabet, to relocate their business entities out of California [8].