Billionaires shatter spending record to fight California wealth tax

Key Points:

• California billionaires have spent a record $612 million in the 2024 state elections, with nearly half directed at defeating Proposition 40, a proposed wealth tax targeting the ultra-rich.
• The opposition is notably coordinated among tech industry leaders, including Sergey Brin, Eric Schmidt, John Doerr, and others, marking an unprecedented political mobilization for Silicon Valley’s typically fragmented donor class.
• Proponents argue Prop 40 is necessary to offset federal healthcare cuts, while opponents claim it threatens California’s economic vitality and private property rights, with some billionaires even relocating out of state to avoid the tax.
• The wealth tax fight has galvanized previously disengaged tech donors into broader political activity, potentially establishing a long-term infrastructure for future campaigns focused on business-friendly policies.
• Despite the massive spending and coordination, questions remain about the sustainability of this coalition beyond the wealth tax fight, as diverse billionaire donors may have differing priorities and levels of political engagement.