California Billionaires Spend Over $1 Million Daily to Oppose Proposed Wealth Tax

Billionaires Fund Opposition to Wealth Tax

Tech billionaires in California have collectively contributed more than $340 million to a campaign opposing Proposition 40. This ballot measure, set for a November vote, seeks to implement a one-time 5% tax on the state's billionaires.

The campaign against Proposition 40 is currently spending over $1 million per day. During the first 19 days of September, the opposition spent at least $21.2 million on advertisements, robotexts, and mailers, warning that the tax could lead to higher taxes for all Californians.

Key Donors and Funding Disparity

Prominent figures from Silicon Valley are among the largest donors to the 'no' campaign. Sergey Brin, Google co-founder, has contributed at least $102 million, and former Google CEO Eric Schmidt has donated over $42 million. Other donors include Peter Thiel, Tony Xu, Patrick Collison, and Chris Larsen.

In contrast, the 'yes' on 40 campaign has raised nearly $33 million, primarily from the healthcare union sponsoring the measure. This highlights a significant financial imbalance between the two sides.

Proposition 40's Purpose and Division

If passed, Proposition 40 would allocate the tax proceeds mainly to healthcare programs, with additional funding for education and food assistance. The measure has created divisions within California's Democratic party; some support it, while others oppose it due to its one-time nature and specific funding allocations.

Major unions and progressive politicians, including Senator Bernie Sanders and Congressman Ro Khanna, support Prop 40. However, both Democratic and Republican gubernatorial candidates, along with organizations like Planned Parenthood Affiliates of California, oppose it.

Broader Implications of the Tax

Both proponents and opponents view the California billionaire tax as a potential precedent for wealth taxes in other states. Those against the measure see it as a populist contagion, while supporters connect it to addressing economic inequality.