Eric Schmidt Reportedly at Odds With Sergey Brin Over $100 Million Campaign Against California's Billionaire Tax
Key Takeaways
- •Proposition 40 would impose a one-time 5% tax on the net worth of California residents whose wealth exceeds $1 billion, a measure the state's Legislative Analyst's Office estimates would affect a few hundred people and could raise tens of billions of dollars.
- •Sergey Brin has contributed over $100 million to Building a Better California, while Eric Schmidt has given more than $3 million, with additional donors including Chris Larsen at $10 million, John Doerr at $7.5 million, and Patrick Collison at $7 million.
- •California Democrats endorsed Proposition 40 with 61.7% support and opposed the billionaire-backed Propositions 41 and 42, although all three measures will still appear on the November ballot.
- •An advisor to Schmidt stated that his only current political involvement is defeating the billionaires tax, and the rift with Brin stems from contributions also being spent on other measures such as the environmental policy Proposition 45.
- •Schmidt, whose fortune Bloomberg estimates at $58.1 billion after serving as Google's CEO from 2001 to 2011 and later as executive chairman, is among the people who could be affected by Proposition 40.
Eric Schmidt and Sergey Brin helped build Google into one of the world's most valuable technology companies. Now the former Google chief executive and the company's cofounder find themselves on the same side of a California political fight—but a new report finds they are increasingly at odds over how their combined contributions are being used. The disagreement centers on the ultra-wealthy coalition that has spent more than $100 million trying to bring down Proposition 40.
The New York Post reported Sunday that Schmidt has grown frustrated with the anti-tax coalition, led in large part by Brin, after the group failed to prevent California Democrats from endorsing the wealth-tax measure. The proposition, backed by SEIU United Healthcare Workers West, has notable Democratic Party leaders Bernie Sanders and Ro Khanna championing it. Adding to the setback, Propositions 41 and 42 were also shot down by the party—the party opposed the billionaire-backed counter-measures, though both still go before voters in November. The party narrowly passed the endorsement threshold at 61.7%.
According to an advisor to Schmidt, the former Google CEO was not "irate" about the endorsement outcome. Instead, the advisor told Fortune that Schmidt's "only current involvement in politics is his contributions to defeating the billionaires tax"—meaning the divergence stemmed from his contributions also being used to oppose other measures, which created the split between the former Google partners.
Schmidt and Brin have both contributed millions to the political organization Building a Better California to oppose Proposition 40. But according to the advisor, the millions in funding are also going toward other areas, such as Proposition 45)—an environmental policy—instead of solely focusing on barring the billionaire tax.
The Post suggests Schmidt's internal dispute also stems from the coalition's political effectiveness. Despite millions in opposition funding, California Democrats endorsed the tax and killed the opposing propositions—an outcome the report says contributed to Schmidt's frustration with the campaign and its leadership.
Propositions 41 and 42 are two proposed ballot measures backed by Schmidt and Brin through Building a Better California. Proposition 41) would require state audits of programs funded by new special taxes, making it harder for the state to use funds raised by the billionaire tax. Proposition 42) would outlaw retroactive taxation, directly countering Proposition 40 and killing the wealth tax.
Billionaires fighting back against the tax
Schmidt and Brin are both major financial backers of the effort opposing the tax, with millions of dollars spent through Building a Better California. Brin has supplied the majority of the money behind the political organization he helped establish, contributing over $100 million. Schmidt, in turn, has contributed over $3 million. Other financial contributors opposing the proposal through the political organization include venture capitalist John Doerr, who contributed $7.5 million; Chris Larsen, executive chair of blockchain company Ripple, who contributed $10 million; and Stripe CEO Patrick Collison, who contributed $7 million.
The money is being spent against Proposition 40), California's proposed billionaire wealth tax—imposing a one-time 5% tax on the net worth of California residents whose wealth exceeds $1 billion on Jan. 1, 2026. The state's Legislative Analyst's Office estimates the tax would affect a few hundred people and could produce tens of billions of dollars.
Other notable billionaires have also publicly opposed the proposition. Business mogul Mark Cuban recently entered a seven-part grudge match on X with California congressman Ro Khanna over the measure's potential tax implications. Anduril Industries cofounder Palmer Luckey has also feuded with Khanna on X, saying the proposal was "extraordinarily frustrating politician-speak that nobody in the industry is dumb enough to fall for."
Schmidt's own financial interest in the issue is substantial. He was CEO of Google from 2001 to 2011 and later served as Google's executive chairman. He built his fortune largely through the technology industry, and Bloomberg estimates his wealth at $58.1 billion—making him one of the people who could be affected by Proposition 40.
Schmidt did not immediately respond to a request for comment.
This story was originally featured on Fortune.com.
