Sergey Brin donated at least $102 million against California tax — RMF24
In California, technology billionaires are funding a campaign against Proposition 40 — an amendment to the state constitution on a one-time 5% wealth tax on the richest residents. Google co-founder Sergey Brin donated at least $102 million to the campaign against the initiative, RMF24 reports.
What Proposition 40 provides for
The vote is scheduled for November 3. The initiative provides for a one-time 5% tax on accumulated wealth for billionaires residing in the state. Businesses, securities, works of art, collectibles and intellectual property would be subject to taxation. Real estate and funds in retirement accounts are proposed to be exempt from this tax.
The funds raised through the tax are planned to be directed toward healthcare and education. Dave Regan, head of the healthcare workers’ union, told CBS News that the initiative is necessary because of cuts to federal funding for the Medicaid program. He forecasts that 3.5 million people could lose health insurance without these resources.
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Campaign spending and polling
Opponents of the tax have already raised $340 million, while supporters have raised $33 million. Donors to the campaign against the proposition also include Palantir Technologies founder Peter Thiel, former Google executive Eric Schmidt, DoorDash chief Tony Xu, Stripe chief Patrick Collison and cryptocurrency entrepreneur Chris Larsen.
According to official documents, more than $1 million a day was spent on campaigning against the initiative. During the first 19 days of September, the opponents’ campaign spent at least $21.2 million. Voters are being sent text messages, flyers and advertisements claiming that the tax on billionaires will lead to higher taxes for all California residents.
At the end of September, a University of Southern California poll showed that 45% of voters planned to support Proposition 40, while 42% planned to oppose it. Two counterproposals — Nos. 41 and 42 — will also appear on the November ballot. If either of them receives more “yes” votes than Proposition 40, the introduction of the tax on billionaires will be blocked, even if Proposition 40 itself is approved.
