Full Breakdown
Billionaire-Backed PAC Mobilizes $300 Million to Oppose California Wealth-Tax Ballot Measure
By Drooid · · How we work
Core Event: Opposition Campaign to Proposition 40
Building a Better California, a political action committee formed earlier this year, has raised $296.6 million and spent $276.6 million in the run-up to the November election. Its primary goal is to defeat Proposition 40—a one-time 5 % tax on the net worth of California residents whose wealth exceeds $1 billion—and to promote counter-measures, Propositions 41 and 42, that would nullify the tax if either passes with more “yes” votes.
Background & Context
Proposition 40 would levy a one-time 5 % tax on the wealth of the state’s billionaires, directing most of the revenue to replace federal cuts to healthcare and to fund education and food-assistance programs. It would be the nation’s first tax targeting billionaire net-worth rather than ordinary income. Opponents argue the measure could drive high-income earners out of California, threatening the state’s budget, which relies heavily on the top 1 % for personal-income-tax revenue.
Key Figures & Groups
- Building a Better California – PAC leading the opposition; spokesperson Abby Lunardini.
- Sergey Brin – Google co-founder; top donor with $102 million.
- John Doerr – Venture capitalist; donor of $40 million.
- Eric Schmidt – Former Google CEO; donor of $35 million.
- SEIU United Healthcare Workers West – Union backing Proposition 40; president Dave Regan.
Data & Statistics
- Total raised by Building a Better California: $296.6 million; total spent: $276.6 million.
- $45 million raised in the week preceding the latest filing.
- Spending breakdown: $103 million to a committee supporting Proposition 41; $65 million to a committee backing Proposition 42; $88.5 million to the main opposition campaign against Proposition 40.
- The healthcare-union campaign in favor of Proposition 40 has raised nearly $31 million as of mid-September.
Official Statements & Responses
Dave Regan, president of SEIU United Healthcare Workers West, called the opposition’s spending an “avalanche of dishonest spending,” while emphasizing the union’s focus on recruiting volunteers to counter the campaign.
Criticism & Opposition
Economist Cristobal Young of Cornell University argued that prior California tax increases on millionaires did not trigger a mass exodus of wealthy residents, suggesting the feared flight may be overstated.
Conflicting Reports & Gaps
Polling on Proposition 40 varies across sources, highlighting uncertainty about voter sentiment as Election Day approaches.
Verbatim Quotes
- “They’re all invested here. They all have customers here, employees here,” — Marty Wilson, Republican political consultant and former California Chamber of Commerce official
What’s Next
Voters will decide the fate of Proposition 40, Proposition 41, and Proposition 42 in the November election. The outcome will determine whether California implements its first billionaire wealth tax and how future campaign-financing dynamics may evolve.