Billionaires spend $1m a day to fight California's Proposition 40 wealth tax
Tech donors led by Google co-founder Sergey Brin have given over $340m to defeat a one-time 5% tax on the state's billionaires, with countermeasures on the November ballot.
At a glance
- Opponents of California's Proposition 40 have raised more than $340m and are spending over $1m a day to defeat it.
- Prop 40 would impose a one-time 5% tax on California billionaires, mostly funding healthcare programs.
- Google co-founder Sergey Brin is the biggest donor at $102m; the yes campaign has raised just under $33m.
Tech billionaires are bankrolling a campaign that is spending more than $1m a day to defeat Proposition 40, a California ballot measure that would impose a one-time 5% tax on the state's billionaires, with voters deciding in early November.
The opposition has raised more than $340m, according to state financial disclosures, and has stepped up spending as the election nears. In the first 19 days of September alone, filings show the no campaign spent at least $21.2m — above $1m per day. Voters are being targeted with robotexts, mailers and advertisements warning that a tax on billionaires would expose all Californians to higher taxes.
Who is paying
The donor list reads like a Silicon Valley roll call: Palantir co-founder Peter Thiel, former Google chief executive Eric Schmidt, DoorDash chief executive Tony Xu, Stripe chief executive Patrick Collison, crypto investor Chris Larsen and several prominent venture capitalists.
The largest single donor is Google co-founder Sergey Brin, who has given at least $102m, followed by Schmidt with more than $42m. By comparison, the yes campaign has raised just under $33m, mostly from the healthcare union that sponsors the measure.
Since July, committees opposing Prop 40 and backing two rival measures have received more than $297.8m, most of it from a Super Pac called Building a Better California.
What the measure would do
Prop 40 would apply a one-time 5% levy to the state's billionaires, with proceeds mainly directed to healthcare programs, plus some education and food assistance. It was first proposed late last year by the Service Employees International Union-United Healthcare Workers West, which says the money is needed because of federal healthcare funding cuts under Donald Trump's One Big Beautiful Bill Act. The union says the funding would preserve care for 3.4 million Californians.
The proposal has split California Democrats. Unions and progressive figures including Vermont senator Bernie Sanders and congressman Ro Khanna support it, while both the Democratic and Republican candidates for governor oppose it, as does Planned Parenthood Affiliates of California. Governor Gavin Newsom has also criticised it, and former congresswoman Katie Porter has become a leading voice against it.
Two rival measures
Opponents also placed two countermeasures on the November ballot. Proposition 41 targets the billionaire tax directly, while Proposition 42 is a broader proposal to shield individuals from certain new taxes. If either receives more yes votes than Prop 40, the billionaire tax would not take effect even if it passes.
A late-September poll by the University of California found 45% of likely voters backing the tax and 42% against — a lead that has narrowed from seven points a month earlier. Both sides see the vote as a test of whether wealth taxes spread to other states.
Questions and answers
- What is California Proposition 40?
- It is a November ballot measure that would place a one-time 5% tax on California's billionaires. Proceeds would mostly fund healthcare programs, with some going to education and food assistance.
- Who is funding the campaign against Proposition 40?
- Tech figures including Google co-founder Sergey Brin ($102m), former Google CEO Eric Schmidt ($42m), Peter Thiel, Tony Xu and Patrick Collison. The opposition has raised more than $340m in total.
- Could Propositions 41 and 42 stop the billionaire tax?
- Yes. If either countermeasure receives more yes votes than Prop 40, the billionaire tax would not take effect even if Prop 40 passes. Prop 41 targets the tax directly, while Prop 42 is broader.
