Another High-Profile Californian Chooses Silver State Freedom
You might have heard the sound of moving trucks heading east on I-15 lately. Well, add one more to the convoy. Los Angeles billionaire Don Hankey just dropped a cool $21 million on a luxury penthouse at the Summit Club outside Las Vegas. And he’s not moving for the golf course.
The 82-year-old businessman, who built his $8.2 billion fortune through his Hankey Group financial services empire, told Forbes exclusively that California’s proposed 5% wealth tax pushed him out of his lifelong home state.
“It’s ridiculous,” Hankey said from his new Nevada digs.
“I just felt a little bit like I wasn’t wanted.”
If Hankey’s name sounds familiar, it should. His Knight Specialty Insurance Company stepped up when President Trump needed a $175 million bond in his New York civil fraud case.
That bond prevented New York Attorney General Letitia James from seizing Trump’s assets while he appeals Judge Arthur Engoron’s judgment against him. Now this supporter of conservative causes finds himself fleeing California’s tax madness.
Think about that for a moment. A man who spent his entire life in California, built a business empire there, employs thousands of workers, and stood by President Trump when he needed help, just packed up and left. Why?
Because California politicians want to squeeze even more money from successful people who already pay massive amounts in taxes.
The Tax That Broke the Camel’s Back
Here’s what spooked Hankey and other wealthy Californians. The proposed wealth tax would hit billionaires with a one-time 5% tax on nearly all their assets if they were California residents on January 1, 2026.
Not income, mind you, but total wealth. Hankey would have been on the hook for around $400 million.
The timing of his December condo purchase was no accident. He started looking for Nevada property right after reading about the proposed tax last fall. The Summit Club penthouse came fully furnished, right down to the silverware, so he could move in immediately.
“I think we’ve created a lot of jobs in California. We have a few thousand people working for us and we have a profit sharing plan. And I have to leave the state,” Hankey explained.
Nevada’s Growing Appeal
Meanwhile, Nevada continues to welcome these California refugees with open arms and zero state income tax. No corporate income tax either. No franchise tax. No estate tax. Just the freedom to keep more of what you earn.
The contrast couldn’t be starker. While California dreams up new ways to tax wealth, Nevada maintains its business-friendly environment that has made it a haven for entrepreneurs and retirees alike. The state ranks seventh nationally for its business tax climate.
For high earners like Hankey, the savings are enormous. Someone making seven figures in California could save hundreds of thousands annually just by moving across the state line. Business owners benefit even more since Nevada doesn’t tax corporate or personal business income.
The Great California Exodus Continues
Hankey isn’t alone in his exit strategy. Google cofounder Larry Page recently spent $173.5 million on two Miami properties in December. Rippling CEO Parker Conrad, Uber founder Travis Kalanick, and venture capitalist Chamath Palihapitiya have all voiced similar concerns about the wealth tax.
Even California Governor Gavin Newsom has publicly opposed the bill, recognizing the damage it could cause. But the Service Employees International Union continues pushing for it, claiming wealthy people won’t actually leave.
Russell Savage, who founded Rockstar energy drinks and left California for Florida, calls that claim “complete bullshit.”
He points out:
“Larry Ellison left. I left. Elon Musk left. You go down the line. I mean, the proof is in the pudding.”
What This Means for Nevada
Every billionaire who moves to Nevada brings more than just personal wealth. They bring business investments, job creation potential, and economic activity. Hankey says his $30 billion Hankey Group will remain headquartered in Los Angeles for now, but he’s more inclined to invest in Nevada than California going forward.
“There’s no reason to be in California full-time,” he said, planning to spend about two-thirds of his year outside the Golden State.
This trend benefits all Nevadans. More wealthy residents mean more investment in local businesses, more high-paying jobs, and more tax revenue from sales and property taxes without burdening working families with income taxes.
The Bigger Picture
Hankey worries this wealth tax won’t be a one-time deal, predicting:
“I just don’t think it will be a one-shot deal. It’s going to come back again as soon as California needs money again.”
California’s loss is Nevada’s gain. While progressive politicians in Sacramento chase away job creators with punitive taxes, Nevada maintains the economic freedom that built American prosperity. The Silver State proves you can fund essential government services without crushing businesses and successful individuals under excessive taxation.
If you’re a California business owner or high earner watching this unfold, maybe it’s time to consider your options. Nevada’s doors remain open to those who value keeping more of their hard-earned money and building their American dream without government picking their pockets at every turn.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
