Tech Billionaires Spend $340M to Oppose California Tax Hike
Tech and VC leaders are pouring millions into a campaign to stop a proposed 5% wealth tax in California.
Updated on Oct. 16, 2026 in Philanthropy
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Tech industry leaders have funneled more than $340 million into a campaign to defeat Proposition 40, a measure proposing a one-time 5% tax on California billionaires. The opposition group is currently sustaining a burn rate of over $1 million per day to influence the outcome.
Why it matters
The massive fundraising effort highlights the intense focus of California's tech elite on regulatory and tax initiatives that could set a precedent for wealth-based taxation. Operators should monitor how this scale of political spending shapes public opinion and the legislative viability of wealth-tax proposals.
The campaign against Proposition 40 has amassed over $340 million in donations, including a $102 million contribution from Sergey Brin. With daily spending exceeding $1 million, the coalition is heavily bankrolled by prominent venture capitalists and tech executives.
The players
Sergey Brin
Co-founder of Google and current donor of at least $102 million to the campaign against Proposition 40.
Peter Thiel
Venture capitalist and co-founder of PayPal who is contributing funds to oppose the proposed wealth tax.
Eric Schmidt
Former Google CEO and technology investor who is financing the campaign against the measure.
Tony Xu
CEO of DoorDash and a contributor to the campaign opposing Proposition 40.
Patrick Collison
CEO of Stripe and donor to the campaign opposing the proposed tax on California billionaires.
The details
The opposition campaign relies on massive capital deployments to secure its goals against the proposed 5% tax on state billionaires. Donors, including Peter Thiel, Eric Schmidt, Tony Xu, Patrick Collison, and Chris Larsen, are funding media and outreach efforts that currently consume over $1 million daily. This strategy aims to saturate the California electorate with messaging before the final vote occurs.
Timeline
2026: The ongoing campaign against Proposition 40 continues with daily spending operations.
Market Landscape
This effort represents a significant escalation in ballot-measure spending, echoing the tactical mobilization seen against the 2020 California Proposition 15. It underscores a trend where state-level fiscal policies trigger immediate and immense private-sector capital responses.
Operators in California should evaluate how a potential 5% wealth tax could alter the state's investment climate and long-term business residency. Financial planning for high-net-worth stakeholders should account for the outcome of this vote as a potential shift in state fiscal policy.
The takeaway
The sheer scale of this campaign indicates that California's tech industry views the proposed tax as a systemic risk rather than a standard policy tweak. Closely monitor the final election results as a key indicator of state-level appetite for future aggressive wealth-based fiscal measures.
Further reading
For broader trends in private funding of public policy initiatives, see the latest coverage in Philanthropy.
Source note: This article includes information reported by The Verge.
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