California Billionaires Fund $40 Million Campaign Against Wealth Tax

A significant financial battle is brewing in California over a proposed wealth tax, with billionaires reportedly pouring nearly $40 million into a campaign to defeat it. The "People's Initiative," set to appear on the November ballot, aims to impose a one-time 5% tax on the net worth of individuals exceeding $1 billion.

The initiative, supported by the Health Care Workers Union, designates 90% of the collected revenue for healthcare services, with the remaining 10% allocated to education and food assistance programs. This proposal has garnered support from the California Democratic Party.

However, the tax faces strong opposition, notably from California Governor Gavin Newsom. He expresses concern that such a tax could prompt wealthy residents to relocate to other states, thereby diminishing California's tax base. Wealthy individuals have formed a coalition named "Build Better California" to actively campaign against the initiative.

According to the Financial Times, "Build Better California" had already amassed over $110 million from various donors by the end of June. Recent contributions include $10 million from Chris Larsen, CEO of the blockchain company Ripple, $7.5 million from venture capitalist John Doerr, and substantial amounts from John Hering and Neil Mehta. A significant donation of $20 million came from Google co-founder Sergey Brin two weeks prior, bringing his total contribution to over $100 million.

Notably, Brin reportedly relocated to Nevada before January 1, 2026, potentially to avoid the tax if it passes. However, tax authorities may scrutinize whether such moves are genuine changes of residency. The opposition group has also allocated funds to support rival initiatives, Propositions 41 and 42, which aim to nullify the wealth tax and impose limits on taxation and state spending.