California billionaires raise $300M to fight Proposition 40 wealth tax

California billionaires are intensifying efforts to defeat Proposition 40, a proposed wealth tax targeting the state’s billionaires. Notable figures such as Google co-founder Sergey Brin, venture capitalist John Doerr, and Ripple co-founder Chris Larsen have collectively raised over $300 million in opposition to the measure. Larsen has been particularly vocal, contributing significantly to campaigns opposing the tax and supporting initiatives that could nullify it. The proposed tax, aimed at residents who were billionaires as of January 1, 2026, seeks to allocate most proceeds to health care. Despite its initial support, the measure is facing declining public backing and substantial opposition funding.

Key Takeaways

• Increased funding from billionaires suggests stronger opposition to Proposition 40.
• Market pricing implies a decreased likelihood of the wealth tax passing.
• Support for the measure has declined in recent polling, consistent with the increased opposition efforts.

What to Watch

Observers should monitor upcoming polls and public statements from key political figures such as Governor Gavin Newsom, who opposes the measure. Changes in support from major Democratic organizations or shifts in the stance of influential labor groups could further impact the measure’s prospects. Additionally, any legislative developments or compromise proposals in the coming weeks may indicate a potential shift in the measure’s viability.