As California is gearing up to vote this November on a proposed 5% wealth tax targeting residents and trusts with assets exceeding $1 billion, some of the state’s richest tech figures are pouring millions into efforts to defeat it. According to a report by Business Insider, the measure is backed mainly by the healthcare workers’ union SEIU-UHW, has raised about $31 million, while opposition groups have amassed more than $120 million — much of it from Silicon Valley’s most powerful names.
Sergey Brin leads the charge
Google cofounder Sergey Brin is the largest single donor opposing the tax. Through a committee called Building a Better California, Brin has contributed $82 million, including a $16 million check in May. Brin, worth an estimated $280 billion, reportedly moved assets outside California earlier this year but remains deeply involved in the campaign to block the measure.
Other tech elites opposing the California wealth tax
* to Building a Better California.* Chris Larsen, Ripple Labs cofounder, contributed $2.5 million to the same group and another $5 million to Golden State Promise, which also opposes the tax. Ripple itself donated an additional $5 million.* Michael Moritz, former Sequoia Capital partner, gave $7.5 million, while Patrick Collison, Stripe’s CEO, added $7 million.* Former Google CEO Eric Schmidt donated just over $3 million, making him one of the earliest contributors.* Peter Thiel, PayPal and Palantir cofounder, gave $3 million to the California Business Roundtable’s political arm, which is aligned against the tax.* Stewart Resnick, owner of The Wonderful Company, donated $2.5 million.* Tony Xu, DoorDash CEO, contributed $2 million.* Max Levchin, Affirm CEO and PayPal cofounder, gave $1 million.* Angel investor Ron Conway donated $100,000 to Stop the Squeeze, another anti-tax group.* Venture capitalist Daniel Tierny added $500,000 to Building a Better California.
Why Larry Page, Sergey Brin and David Sacks headed for the exits
The richest Californians did not wait for the vote. In the days before Christmas, entities tied to Google co-founder Sergey Brin moved or terminated 15 California LLCs, shifting some to Nevada. Co-founder Larry Page went further, with more than 45 associated LLCs filing to leave the state or go inactive, while a trust linked to him bought a $71.9 million mansion in Miami. Their combined net worth tops $518 billion, which is exactly why the moves drew attention. Sacks, the venture investor and White House AI and crypto adviser, opened a new office for Craft Ventures in Austin. Thiel, meanwhile, decamped to Buenos Aires, drawn partly by President Javier Milei’s anti-tax politics and partly by the California measure. Not everyone fled—Nvidia’s Jensen Huang said he was “perfectly fine” paying it.
A clash of ideals
Supporters of the California Wealth Tax argue that the measure would help fund public services and also reduce inequality in a state with one of the widest wealth gaps in the nation. On the other hand, the opponents of the tax warn that it would trigger capital flight, legal challenges, and long-term damage to California’s innovation economy.Governor Gavin Newsom’s attempt to broker a compromise earlier this year failed, leaving the issue to voters in what is shaping up to be one of the most expensive state ballot fights in history.
