Google’s former CEO Eric Schmidt is reportedly unhappy with founder Sergey Brin over how more than $100 million in political contributions is being used in California. The two technology billionaires are backing efforts to defeat Proposition 40, a proposed one-time wealth tax on California residents worth more than $100 million. However, a report says Schmidt has grown frustrated because money raised to fight the tax is also being used against other ballot measures.
Why Eric Schmidt is unhappy with Sergey Brin
According to a report by the New York Post, Eric Schmidt has become frustrated with the political coalition led in large part by Sergey Brin after California Democrats endorsed Proposition 40. The former Google CEO and Google co-founder have both donated millions of dollars to Building a Better California, a political organisation fighting the proposed billionaire wealth tax.However, an advisor to Schmidt told Fortune that he was not “irate” over the Democratic Party’s endorsement of the measure. The advisor said Schmidt’s current political involvement is focused on defeating the billionaire tax. The concern, according to the report, is that money contributed to the campaign is also being used on other political measures.
Where the $100 million is being spent
Sergey Brin has provided more than $100 million to Building a Better California, while Schmidt has contributed more than $3 million, according to the report. The group is opposing Proposition 40, but its spending also includes efforts linked to Propositions 41 and 42 and other issues.Proposition 41 would require state audits of programmes funded by new special taxes. Proposition 42 would restrict retroactive taxation and is aimed at countering the proposed wealth tax.The wider use of campaign funds has reportedly become a source of frustration for Schmidt, particularly after California Democrats backed Proposition 40 while rejecting the billionaire-backed alternatives.
What is California Proposition 40
Proposition 40 is a proposed one-time wealth tax targeting California residents with net worth above $1 billion. If approved, it would impose a 5% tax on the net worth of people who meet the wealth threshold as of January 1, 2026.California’s Legislative Analyst’s Office has estimated that the measure could affect a few hundred people and potentially generate tens of billions of dollars.The proposal has attracted support from figures including Senator Bernie Sanders and Representative Ro Khanna, while several wealthy technology and business leaders are funding efforts to defeat it.
