California Tax Vote: $300 Million Billionaire Push

The proposed 5% one-time tax on the assets of California billionaires faces its heaviest opposition yet. The vote will occur during the state's midterm election on November 3. The measure, known as Proposition 40, would levy a single charge on the holdings of individuals with net worthes exceeding a set threshold.

A coalition of tech executives and venture capitalists has raised more than $300 million to block the tax. This funding dwarfs the $32 million collected by supporters. David McCuan, a political science professor at Sonoma State University, notes that this spending makes it the most expensive ballot measure in state history. It is also among the costliest campaigns in the current midterm cycle.

Notable donors include Google co-founder Sergey Brin, DoorDash founder Tony Xu, and Stripe co-founder Patrick Collison. Other contributors include Ripple co-executive chairman Chris Larsen, and venture capitalists John Doerr, Michael Moritz, and Vinod Khosla. Meta founder Mark Zuckerberg has not donated directly to the opposition. However, SEC filings show he told the company board he would buy a home outside California to avoid the tax. The board created a new class of shares to help him pay the tax, a move that could affect stock prices.

Brian Galle, an economics professor at UC Berkeley and co-author of the proposal, found flyers in his mailbox containing details he did not write. The flyers claimed the tax could apply to anyone, including those with retirement savings. Ashley Craig, a volunteer for the group Patriotic Millionaires, says voters frequently report hearing similar misinformation. She notes that any change to the tax requires a two-thirds majority in the assembly and must align with the original intent.

The Democratic Party has endorsed the measure, but key figures have opposed it. Governor Gavin Newsom, who is eyeing a 2028 presidential run, calls the tax poorly written. He argues it could harm the state if billionaires move, citing the estimated $2.3 trillion wealth of the targeted group. Xavier Becerra, the Democratic candidate for governor, and former congresswoman Katie Porter have also voiced opposition. McCuan describes the conflict as a proxy battle between party progressives and moderates.

Opponents are also backing two other ballot measures. One would ban new state taxes based on personal property or retroactive imposition. The other requires state auditors to review the financial impact of proposed taxes before a vote. If these measures pass and receive more votes than the billionaire tax, they could negate Proposition 40 even if it passes.

A recent poll by the Public Policy Institute of California shows voters support the tax by a small margin. They also support the two opposing measures. Mark Baldassare, the institute's statewide survey director, notes that only about a third of citizen initiatives pass. Suzane Jimenez, chief of staff at the SEIU health workers union, remains confident. She states that 3,000 volunteers have knocked on doors in the last few weeks to explain the tax. Senator Bernie Sanders and Congressman Ro Khanna have also traveled across the state to rally support.