Brin pours $100 million into fight against California billionaire tax
With an estimated liability of $13.3 billion, Sergey Brin joins other tech leaders in opposing the proposed one-time levy, while Governor Gavin Newsom warns of economic fallout.
Google co-founder Sergey Brin has donated a further $20 million to the opposition group Build a Better California, bringing his total spending to exceed $100 million in efforts to block Proposition 40. The proposed ballot measure would impose a one-time 5% tax on the net worth of approximately 200 billionaires residing in the state, with proceeds earmarked for healthcare programs. Brin, whose net worth is estimated at around $267 billion, faces an estimated tax liability of $13.3 billion under the measure.
The revenue from Proposition 40 is intended to support California’s healthcare infrastructure, particularly Medicaid, which could lose up to $30 billion in federal funding due to upcoming federal budget cuts. The opposition group funded by Brin is also advocating for other ballot measures that could effectively block the tax by limiting the introduction of new taxes. Californians are scheduled to vote on the proposition in November.
Brin’s financial commitment coincides with similar moves by other prominent technology leaders. Meta founder Mark Zuckerberg reportedly purchased a $170 million mansion near Miami, while former Uber CEO Travis Kalanick, venture capitalist Peter Thiel, and Brin’s fellow Google co-founder Larry Page have taken steps to relocate or purchase property outside the state. Nvidia co-founder Jensen Huang, however, has stated he is willing to pay the tax, estimating his liability at around $8 billion.
California Governor Gavin Newsom has expressed concern over the potential economic impact of wealthy residents leaving the state. Newsom has advocated for a national billionaires' tax instead, criticising the practice of borrowing against stock portfolios as a 'tax-free lifestyle loan'. He noted in a blog post that the current system allows the ultra-wealthy to report no taxable income while the average worker shoulders a higher rate.
The outcome of Proposition 40 remains uncertain as it approaches the November vote. The long-term economic impact of wealthy residents leaving California is speculative and subject to debate among policymakers. The exact financial impact on the state’s healthcare programs depends on the passage of the measure and the extent of federal funding cuts.
