Tech Donors Fund $300 Million Fight

California voters will face a $300 million opposition campaign on November 3. The spending war centers on Prop 40, a proposed one-time 5 percent tax on the assets of the state's billionaires. David McCuan, a political science professor at Sonoma State University, identified this as the most expensive ballot measure fight in state history.

The opposition is led by several prominent figures in the technology sector. Sergey Brin, Google co-founder, is a key donor, as are Tony Xu of DoorDash, Patrick Collison of Stripe, and Chris Larsen of Ripple. Venture capitalists John Doerr, Michael Moritz, and Vinod Khosla have also contributed to the cause. Together, these backers have raised more than $300 million to block the measure.

Supporters of the tax have raised a comparatively modest $32 million. Mark Zuckerberg, founder of Meta, has not donated to the opposition, but his company's filings reveal a strategy to mitigate the tax's impact. Zuckerberg informed the board, which includes Xu and Collison, that he intends to purchase a home outside the state. The board subsequently created a new class of shares for him to pay the tax, a move designed to prevent fluctuations in Meta's stock price.

The volume of advertising and mailers has generated confusion among some residents. Brian Galle, an economics professor at the University of California, Berkeley, and a co-author of the proposal, received a flyer claiming the tax could apply to retirement savings. Galle stated that such a provision was not in the original text. Ashley Craig, a volunteer with the pro-tax group Patriotic Millionaires, reported that voters frequently ask about secret provisions that would tax all residents.

Galle argued that the massive spending underscores the very inequality the tax seeks to address. "The irony is that Prop 40 is meant to make democracy more equal, but the billionaires are using their money to avoid that," he said. Francesco Trebbi, a professor at Berkeley's Haas School of Business, described the contest as a clash between Sergey Brin and millions of Californians, noting that the dynamic erodes trust in the political system.

The fight has also revealed divisions within the Democratic Party. While the state party has endorsed the tax, Craig said she has received little ground support from the organization. McCuan characterized the measure as a test between progressives and moderates. Governor Gavin Newsom, who is considering a 2028 presidential run, opposes the tax, calling it poorly written. He warned that billionaires, whose wealth the authors estimate at $2.3 trillion, might leave the state if the measure passes. Gubernatorial candidate Xavier Becerra and former congresswoman Katie Porter also oppose the proposal.

Opponents have backed two additional ballot measures that could impact the outcome. One bars new state taxes on personal property or those imposed retroactively, while the other requires state auditors to review proposed tax measures for financial impact before a vote. If either of these measures receives more votes than Prop 40, it could negate the tax even if voters approve it. A recent poll by the Public Policy Institute of California found that voters narrowly support the tax but also back the two measures aimed at stopping it. Mark Baldassare, the institute's survey director, noted that only about a third of citizen initiatives pass, placing the burden of proof on the yes side. Suzane Jiminez, chief of staff at the SEIU health workers union, expressed confidence in the campaign. She reported that 3,000 volunteers have recently been knocking on doors, and that Senator Bernie Sanders and Congressman Ro Khanna have rallied support across the state.