Brin Leads $300M Push to Block CA Tax

Sergey Brin, the co-founder of Google, has anchored a coalition of wealthy investors and tech leaders who have raised more than $300 million to stop a new California tax. The group aims to defeat Proposition 40, a measure that would impose a one-time 5 percent tax on the assets of the state's billionaires. David McCuan, a political science professor at Sonoma State University, identified the spending as the most expensive ballot measure fight in history.

The opposition includes DoorDash founder Tony Xu, Stripe co-founder Patrick Collison, and Ripple co-executive chairman Chris Larsen. Venture capitalists John Doerr, Michael Moritz, and Vinod Khosla have also contributed to the effort. In contrast, the supporters of the measure have raised only $32 million. This disparity creates a lopsided financial battlefield as voters prepare for the November 3 election.

Meta founder Mark Zuckerberg has not donated directly to the opposition. However, documents filed with the Securities and Exchange Commission show he informed the company board that he would buy a home outside California to avoid the levy. The board, which includes Xu and Collison, subsequently created a new class of shares that allows Zuckerberg to pay the tax without impacting Meta's stock price.

The volume of advertising and mailers has caused confusion among some residents. Brian Galle, an economics professor at the University of California at Berkeley who helped draft the proposal, received a flyer claiming the tax could apply to anyone, including those with retirement savings. He stated that such claims were not part of the original writing. Ashley Craig, a volunteer with the pro-tax group Patriotic Millionaires, said she frequently hears from voters who believe the measure contains secret provisions to tax the general public.

Galle argued that the heavy spending illustrates the inequity the tax seeks to address. He noted that the billionaires are using their own wealth to evade the democratic process. Francesco Trebbi, a professor at Berkeley's Haas School of Business, described the contest as a fight between Brin and millions of Californians, saying it erodes trust in the system.

The battle has also split Democratic leaders. Governor Gavin Newsom, who is considering a 2028 presidential run, opposes the tax. He called the language poorly written and warned that it could drive billionaires away, citing an estimated combined wealth of 2.3 trillion dollars for those affected. State Senator Xavier Becerra and former congresswoman Katie Porter also oppose the measure, even though the state Democratic party has endorsed it.

Opponents have also funded two other ballot measures. One would bar new state taxes on personal property or those applied retroactively. The other requires state auditors to review proposed tax measures for financial impact before a vote. If either of these measures receives more votes than the billionaire tax, it could negate the tax even if voters approve Proposition 40.

Suzane Jiminez, chief of staff at the SEIU health workers union, said she feels confident about the outcome. She reported that 3,000 volunteers have recently been knocking on doors and distributing flyers. Senator Bernie Sanders and Congressman Ro Khanna have also rallied support across the state. A recent poll from the Public Policy Institute of California found that voters narrowly support the tax, though they also back the measures aimed at stopping it.