California Billionaires Raise $300 Million to Fight Proposition 40 Wealth Tax
Key Takeaways
- •Three prominent tech figures—Google co-founder Sergey Brin, venture capitalist John Doerr, and Ripple co-founder Chris Larsen—have raised a combined total exceeding $300 million for the campaign against Proposition 40.
- •Under Proposition 40, residents who qualify as billionaires on January 1, 2026 would be subject to the wealth tax, with the bulk of the revenue directed to health care.
- •Chris Larsen has played a leading role in the opposition, funding campaigns against the measure while also supporting parallel initiatives designed to nullify it.
- •Public support for the wealth tax has declined in recent polling, and prediction market pricing implies a diminishing likelihood that the measure will pass.
- •Governor Gavin Newsom opposes the proposal, and shifts among major Democratic organizations or influential labor groups, along with any compromise proposals, could affect its prospects.
California billionaires are intensifying their campaign to defeat Proposition 40, a proposed wealth tax aimed at the state's richest residents. Google co-founder Sergey Brin, venture capitalist John Doerr, and Ripple co-founder Chris Larsen have collectively raised more than $300 million to oppose the measure.
The involvement of the three men reflects where much of that wealth is concentrated: California is home to a large share of the nation's billionaires, many of them tied to the technology industry. Wealth taxes on personal net worth remain rare in the United States — no state currently imposes one — which has kept California's recurring proposals under national scrutiny.
Larsen has been particularly vocal in the effort. The Ripple co-founder has contributed significantly to campaigns against the tax while also backing initiatives that could nullify it. Ripple, a blockchain payments company headquartered in San Francisco, is among the most prominent cryptocurrency businesses based in the state.
Proposition 40 would apply to residents who qualified as billionaires as of January 1, 2026, and would direct most of its proceeds to health care. Although the measure initially drew public support, it now faces declining backing alongside substantial opposition funding. Recent polling shows support for the proposal has slipped, a trend consistent with the escalation of opposition efforts, and market pricing implies a decreased likelihood of the wealth tax passing. Prediction markets, where traders buy and sell contracts tied to real-world outcomes, are often read alongside traditional polls as a running gauge of a measure's odds.
Background
Wealth taxation has been a recurring flashpoint in California politics. Lawmakers in Sacramento have repeatedly introduced bills to tax extreme wealth, including proposals targeting the state's billionaires, though none has been enacted. California already levies one of the highest personal income tax rates in the country, and personal income taxes are the largest single source of state revenue. Concerns about high-net-worth residents relocating to states with no personal income tax, such as Texas and Florida, have featured prominently in those debates. Propositions that reach the statewide ballot in California are decided directly by voters, meaning the fate of Proposition 40 will ultimately be settled at the ballot box rather than in Sacramento.
What to Watch
Observers are monitoring upcoming polls and public statements from key political figures, including Governor Gavin Newsom, who opposes the measure. Shifts in support from major Democratic organizations or changes in the stance of influential labor groups could further affect the proposition's prospects. Any legislative developments or compromise proposals in the coming weeks may also signal a change in the measure's viability.
