Brin and Tech Donors Fund $300M Push Against California Asset Tax

Google co-founder Sergey Brin has joined a coalition of tech leaders who have donated more than $300 million to block a California tax measure. The group, which includes DoorDash founder Tony Xu, Stripe co-founder Patrick Collison, and venture capitalists John Doerr, Michael Moritz, and Vinod Khosla, aims to defeat Prop 40. The ballot initiative would impose a one-time 5 percent tax on the assets of the state's billionaires. Supporters of the measure have raised only $32 million.

David McCuan, a political science professor at Sonoma State University, described the spending as the most expensive ballot measure fight in history. The disparity in funding has generated a high volume of advertising and mailers, leading to voter confusion. Brian Galle, an economics professor at the University of California at Berkeley who helped draft the proposal, noted that some opposition flyers claim the tax could apply to retirement savings. He stated that those provisions were not part of the original text he wrote.

Meta founder Mark Zuckerberg has not contributed money to the opposition, but his company's filings reveal strategic moves to mitigate the tax's impact. Zuckerberg told the board, which includes Xu and Collison, that he planned to buy a home outside California. To manage the potential effect on Meta's stock price, the board created a new class of shares that would allow him to pay the tax without selling significant holdings.

Critics argue the spending highlights the very inequality the tax seeks to address. Galle pointed to the Supreme Court's Citizens United ruling when stating that billionaires are using their wealth to avoid democratic equality. Francesco Trebbi, a professor at Berkeley's Haas School of Business, characterized the contest as a battle between Brin and millions of Californians, suggesting it erodes public trust in the political system.

The campaign also exposes divisions within the Democratic Party. While the state party endorses the tax, volunteer Ashley Craig of Patriotic Millionaires reports limited ground support from the party. Governor Gavin Newsom opposes the measure, describing it as poorly written and warning that it could drive away billionaires whose collective wealth is estimated at $2.3 trillion. Other opponents include gubernatorial candidate Xavier Becerra and former congresswoman Katie Porter.

Opponents have also backed two additional ballot measures that could effectively negate Prop 40 if they receive more votes. One measure bars new state taxes on personal property or retroactive taxes, while the other requires state auditors to review proposed tax impacts before a vote. A recent Public Policy Institute of California poll shows voters narrowly support the tax, but they also favor the two measures designed to stop it.

Suzane Jiminez, chief of staff at the SEIU health workers union, which sponsored the measure, expressed confidence in the campaign. She noted that 3,000 volunteers are currently knocking on doors and distributing flyers across the state. Senators Bernie Sanders and Congressman Ro Khanna have also rallied support for the initiative. McCuan suggested that even if the tax fails, the outcome could benefit progressives by allowing them to target big tech as a political symbol in future elections.