Full Breakdown
Sergey Brin Leads $102 Million Campaign Against California’s Billionaire Tax
By Drooid · · How we work
The Billionaire Tax Battle: Brin’s $102 Million Opposition
Google co-founder Sergey Brin has contributed $102 million to Building a Better California, a political-action committee that opposes Proposition 40. Campaign filings show the broader anti-tax effort has raised more than $187 million, making Brin the single largest donor. By contrast, supporters of the measure have collected about $32 million. Proposition 40, slated for the November ballot, would levy a one-time 5 % tax on California’s roughly 200 billionaires, directing 90 % of the proceeds to the state’s health-care system and the remaining 10 % to education, food assistance and administration. With a net worth near $260 billion, Brin could owe roughly $13 billion if the tax passes.
Funding the Fight
In addition to Brin, other tech magnates such as former Google CEO Eric Schmidt and PayPal co-founder Peter Thiel have donated to anti-tax groups. Recent filings list Nevada as Brin’s residence, and a March purchase of a $51 million home near Miami Beach has been reported. Co-founder Larry Page has also moved assets out of California, incorporating his family office and a nonprofit in Delaware.
Projected Revenue and Economic Impact
Proponents estimate the tax would generate about $100 billion over five years. Six billionaires expected to leave the state—including Brin, Page, Thiel, car-loan magnate Don Hankey, former Uber CEO Travis Kalanick and director Steven Spielberg—could together forfeit roughly $27 billion in tax revenue, about one-quarter of the projected total. A National Bureau of Economic Research working paper noted that California’s billionaires paid $4.1 billion in income tax last year, representing 0.2 % of their collective $2 trillion net worth. Even a complete exodus would require roughly 25 years of lost income tax to offset the $100 billion windfall, and a quarter-scale departure would take a century.
Official Responses
Governor Gavin Newsom has argued the tax would shrink the state’s tax base and cut funding for public services. He warned that “the fact is it actually will reduce investments in education.” State officials contend the measure is necessary to address California’s high poverty rate—18 % of residents live below the poverty line despite the state’s $4 trillion GDP.
Verbatim Quotes
- “The fact is it actually will reduce investments in education,” — California Gov. Gavin Newsom