Tech Donors Flood California Ballot

The race to stop California’s proposed billionaire tax has become a financial behemoth.

Voters will cast ballots on November 3 to decide whether to approve a one-time 5 percent levy on the assets of the state's wealthiest residents. David McCuan, a political science professor at Sonoma State University, identifies this as the most expensive ballot measure fight in history. The opposition, which includes Google co-founder Sergey Brin, DoorDash founder Tony Xu, Stripe co-founder Patrick Collison, Ripple co-executive chairman Chris Larsen, and venture capitalists John Doerr, Michael Moritz, and Vinod Khosla, has amassed more than $300 million. Proponents have raised only $32 million to date.

Mark Zuckerberg, the founder of Meta, has not contributed to the opposition. However, Meta's SEC filings indicate that he informed the company's board of his intent to purchase a home outside the state to avoid the tax. The board, which includes Xu and Collison, subsequently created a new class of shares to facilitate his payment, a move that could have impacted Meta's stock price.

A surge in advertising and mailers has generated confusion among some voters. Brian Galle, an economics professor at the University of California, Berkeley, who helped draft the proposal, received a flyer claiming the tax could apply to retirement savings. He stated that such provisions were not in the original text. Ashley Craig, a volunteer with the pro-tax group Patriotic Millionaires, reported that voters frequently cite secret provisions that would tax everyone. Any future changes to the tax would require a two-thirds majority in the assembly and must align with the measure's original spirit.

Galle argued that the spending demonstrates the very issue the tax addresses. He noted that the billionaires are using their wealth to avoid the equality Prop 40 seeks to create, citing the Supreme Court's Citizens United ruling. Francesco Trebbi, a professor at Berkeley's Haas School of Business, described the contest as Sergey Brin versus millions of Californians, arguing it erodes trust in the system.

The conflict also reveals a divide within the Democratic Party. While the state party endorses the tax, Craig said she has received little ground support from it. McCuan views the measure as a proxy test between progressives and moderates. A victory could encourage progressive candidates to pursue similar ideas in the 2028 presidential race. Governor Gavin Newsom, who is considering a 2028 run, opposes the tax, calling it poorly written and warning it could drive away billionaires whose wealth is estimated at 2.3 trillion dollars. Gubernatorial candidate Xavier Becerra and former congresswoman Katie Porter also oppose the measure.

Opponents have backed two additional ballot measures. One bars new state taxes on personal property or those imposed retroactively. The other requires state auditors to review proposed tax measures for financial impact before a vote. If either of these passes with more votes than the billionaire tax, it could negate the tax even if voters approve it.

A recent Public Policy Institute of California poll found that voters narrowly support the tax but also back the two measures aimed at stopping it. Mark Baldassare, the institute's statewide survey director, noted that only about a third of citizen initiatives pass, placing the burden on the yes side. He plans to poll again as voters receive state guides. Suzane Jiminez, chief of staff at the SEIU health workers union, which sponsored the measure, expressed confidence. She said 3,000 volunteers have been knocking on doors and distributing flyers, while Senator Bernie Sanders and Congressman Ro Khanna have rallied support across the state.