The ultra-rich are spending one million dollars a day fighting California’s proposed billionaire tax
Technology billionaires have raised more than $340m to defeat California’s Proposition 40, a proposed one-time tax on the state’s billionaires. Their campaign spent at least $21.2m in the first 19 days of September, as the November vote approaches and opposition advertising intensifies.
If approved, Prop 40 would levy a one-off 5% tax, with most of the proceeds going to healthcare and some to education and food assistance. Sergey Brin has contributed at least $102m to the opposition and Eric Schmidt more than $42m, while supporters have raised just under $33m. A late-September poll put support at 45% and opposition at 42%; two other ballot measures could block the tax if they receive more votes.
- Opponents have raised more than $340m to defeat Prop 40.
- The proposed tax is a one-time 5% levy on California billionaires.
- A late-September poll showed support at 45%, against 42%.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters can argue that a one-time levy on extreme wealth would raise substantial funds for healthcare, education and food assistance, helping meet public needs without imposing a recurring tax. They may see it as a fair contribution from those best able to pay, particularly if the proceeds support services that benefit Californians broadly.
The case against
Opponents can argue that a large one-off tax on billionaire wealth could discourage investment or prompt wealthy residents to move assets or leave the state, potentially weakening California’s economy and future tax base. They may also question whether a ballot measure is the right way to design and administer such a levy, even while recognising the importance of funding public services.