Silicon Valley billionaires spend over $1 million a day to stop California’s billionaire tax measure
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Tech billionaires have raised more than $340 million to finance a campaign spending over $1 million a day to defeat Proposition 40, a one-time 5% wealth tax on the November ballot that critics say would hit California taxpayers and the economy.
Tech billionaires have contributed more than $340 million to a coordinated effort aimed at defeating Proposition 40, a ballot measure that would impose a one-time 5% tax on California’s billionaires and direct the proceeds to health-care, education and food-assistance programs. State financial disclosures show the opposition campaign has been spending at least $1 million per day, with $21.2 million spent during the first 19 days of September alone.
The campaign’s advertising strategy includes robot-text messages, mailers and television ads that argue the tax would raise overall taxes for Californians. Major donors include Google co-founder Sergey Brin, who has contributed at least $102 million, and former Google CEO Eric Schmidt, who has given more than $42 million. By contrast, the “yes” side has raised just under $33 million, primarily from health-care unions.
Support for Proposition 40 comes from several progressive politicians and labor groups, while both Democratic and Republican gubernatorial candidates have opposed it. Opponents have also placed two related measures, Propositions 41 and 42, on the ballot; either could block the billionaire tax even if it passes.
“There’s a lot of volatility among the electorate surrounding a pushback against Marie Antoinette and her tech friends,” said David McCuan, a political-science professor at Sonoma State University.
Polling by the University of California shows support for the tax at 45% versus 42% opposition, a narrowing margin from earlier in the campaign. Analysts note that the outcome could influence future wealth-tax initiatives in other states.
The opposition campaign has hired consultants and media firms, and has run ads featuring the president of the California Medical Association, René Bravo, who argues the tax would harm health-care funding. The “yes” campaign, led by health-care unions and progressive leaders such as Senator Bernie Sanders, emphasizes the tax’s role in preserving health-care for millions of Californians.
“A few controversial billionaires like Sergey Brin would rather spend millions to fund opposition campaigns than simply pay their fair share in taxes so millions of their fellow Californians don’t lose their health-care,” said Debru Carthan, a spokesperson for the SEIU-UHW.
Both sides have deployed digital advertising on platforms such as Instagram, X and YouTube, and have invested in consultant services for lobbying and media strategy. The campaign finance filings also show contributions to local Democratic parties, although those parties have publicly endorsed the tax.
The result of the November vote is expected to provide insight into voter attitudes toward wealth-tax proposals ahead of future elections.