Google co-founder Sergey Brin has contributed more than $100 million to campaigns opposing California's proposed "Billionaire Tax," a measure that could cost him an estimated $13.3 billion if enacted. Brin, whose net worth is approximately $267 billion, recently donated an additional $20 million to Build a Better California, an organization actively campaigning against the tax.
Proposition 40, as the ballot initiative is known, would institute a one-time 5% tax on the net worth of about 200 billionaires residing in California. Revenue generated from the tax is intended to fund the state's healthcare programs. However, Governor Gavin Newsom has voiced opposition to the measure, advocating instead for a "national billionaires' tax." Newsom stated on Substack that the current tax system allows office workers to bear a higher tax rate than the ultra-wealthy, criticizing the practice of borrowing against stock portfolios while reporting no taxable income.
Proposition 40 is scheduled to appear on California's ballot in November. It faces potential competition from other ballot initiatives. One such competing measure, which qualified earlier and is backed by Building A Better California, would mandate audits of programs funded by new state special taxes, according to the California Secretary of State.
This political and financial maneuvering occurs as potential budget cuts loom. The state's Medicaid program, for instance, is projected to lose up to $30 billion in federal funding next year, partly due to anticipated budget reductions under the Trump administration.
Several high-profile individuals have taken steps to avoid California's potential tax. Meta founder Mark Zuckerberg reportedly purchased a mansion near Miami, and venture capitalist Peter Thiel, former Uber CEO Travis Kalanick, and Google co-founder Larry Page have relocated out of the state. In contrast, Jensen Huang, co-founder of Nvidia, has stated he is "perfectly fine" with paying the proposed billionaire tax.