California's retroactive unrealized gains tax proposal sparked a mass exodus—entrepreneurs, engineers, and investors are voting with their feet. The policy managed to push away exactly the talent pool that builds the state's tech economy, replacing opportunity with uncertainty.

When governments weaponize tax code against wealth creators, capital doesn't stay to fight—it migrates. We've already seen this pattern: top tech talent and startups are relocating to friendlier jurisdictions. The ripple effect reshapes not just where companies operate, but fundamentally where innovation happens next.

This moves the needle on a bigger question: as regulatory environments diverge globally, how do regions maintain competitive advantage? Policies that punish success rarely age well. The long-term trajectory of tech hubs depends on keeping the people who build them from leaving in the first place.