Tech Donors Pour $300 Million Into California Billionaire Tax Fight

More than $300 million has been raised by opponents of a proposed one-time 5 percent tax on California billionaires, making it the most expensive ballot measure campaign in state history. This figure comes from David McCuan, a political science professor at Sonoma State University who tracks state elections. The total dwarfs the $32 million raised by supporters of the measure, known as Proposition 40, as the state prepares for a vote on November 3.

The opposition is funded by a group of prominent technology leaders and venture capitalists. Sergey Brin, co-founder of Google, is among the donors. The list also includes Tony Xu, founder of DoorDash, Patrick Collison, co-founder of Stripe, and Chris Larsen, co-executive chairman of Ripple. Venture capitalists John Doerr, Michael Moritz, and Vinod Khosla have also contributed to the anti-tax effort. This coalition represents a significant concentration of capital aimed at blocking the legislation.

Mark Zuckerberg, the founder of Meta, has not donated directly to the opposition. However, his influence is evident in the company's financial filings. Zuckerberg informed Meta's board, which includes Xu and Collison, that he intended to purchase a home outside of California to avoid the tax. In response, the board created a new class of shares. This move was designed to allow Zuckerberg to pay the tax without affecting Meta's stock price, a decision that highlights the intricate ways wealthy individuals manage their assets against legislative threats.

The massive spending on advertising and mailers has created confusion among voters. Brian Galle, an economics professor at the University of California, Berkeley, who helped draft the proposal, noted that a flyer he received claimed the tax could apply to anyone, including those with only retirement savings. Galle stated that those details were not in the original text. Ashley Craig, a volunteer for the pro-tax group Patriotic Millionaires, reports that voters frequently ask about secret provisions that might tax everyone. Any changes to the tax structure would require a two-thirds majority in the state assembly and must align with the original intent of the measure.

The campaign spending has drawn criticism for undermining democratic equality. Galle argued that the irony of billionaires using their wealth to avoid a tax meant to equalize democracy is clear. He pointed to the Supreme Court's Citizens United v FEC ruling as context for this dynamic. Francesco Trebbi, a professor at Berkeley's Haas School of Business, described the contest as a battle between Sergey Brin and millions of Californians. Trebbi suggested that such a lopsided financial fight erodes public trust in the political system.

The vote also exposes a division within the Democratic Party. The state party has endorsed the tax, but Craig said she has received limited ground support from its members. McCuan views the measure as a test between progressive and moderate Democrats. A victory could encourage progressive candidates to propose similar ideas in the 2028 presidential race. Governor Gavin Newsom, who is considering a 2028 run, opposes the tax. He called it poorly written and warned it could harm the state if billionaires, whose wealth is estimated at 2.3 trillion dollars, leave. Other opponents include Gubernatorial candidate Xavier Becerra and former congresswoman Katie Porter.

Voters will also decide on two other ballot measures supported by the opposition. One measure bars new state taxes on personal property or those imposed retroactively. The other requires state auditors to review proposed tax measures for financial impact before a vote. If either of these measures passes with more votes than Proposition 40, it could negate the billionaire tax even if voters approve it. This strategic layering adds complexity to the November 3 ballot.

A recent poll by the Public Policy Institute of California found that voters narrowly support the tax. However, they also back the two measures aimed at stopping it. Mark Baldassare, the institute's statewide survey director, noted that only about a third of citizen initiatives typically pass. This historical data places the burden of proof on the yes side. Baldassare plans to conduct another poll as voters receive state guides explaining the measures. Suzane Jiminez, chief of staff at the SEIU health workers union, which sponsored the measure, expressed confidence in their campaign. She said 3,000 volunteers have been knocking on doors and distributing flyers. Senator Bernie Sanders and Congressman Ro Khanna have also rallied support across the state. McCuan suggested that even a defeat could benefit backers, who could blame moderates and target big tech as a political bogeyman.