Core Viewpoint - The proposed California billionaire tax is prompting ultra-wealthy residents to leave the state, potentially exacerbating the budget deficit rather than alleviating it [1][3][4]. Group 1: Wealth Exit - Individuals with a combined net worth of approximately $500 billion have decided to permanently leave California due to the proposed billionaire tax, which is characterized as an asset seizure-style levy [2][4]. - The immediate exit of these high-net-worth individuals is seen as a preemptive measure to avoid the tax, which could ultimately lead to lower revenue collection for the state [3][4]. Group 2: Budget Implications - The departure of wealthy residents is expected to worsen California's budget deficit, placing additional financial burdens on ordinary taxpayers [3][4]. - Lawmakers may be forced to resort to increased borrowing or broader tax hikes to compensate for the loss of revenue from high-net-worth individuals [3]. Group 3: Tax Criticism - The billionaire tax is criticized for targeting unrealized and illiquid wealth, particularly affecting startup founders who may have significant equity but modest salaries [5]. - An example highlighted involves a founder with $1.2 billion in paper equity earning a $150,000 salary, who could face substantial cash obligations under the proposed tax, risking insolvency if the company's value declines [6].