Californians Face $300 Million War Chest in Billionaire Tax Vote

A record-breaking financial war has emerged over a single state ballot measure, with opponents deploying more than $300 million to block a proposed one-time asset tax.

The disparity in funding is extreme, as backers of the measure have raised only $32 million. This spending gap represents the highest amount ever recorded for a California ballot fight, according to political science professor David McCuan at Sonoma State University. The measure, known as Proposition 40, would impose a 5 percent tax on the assets of California billionaires. Voters will cast their ballots on November 3 to determine the tax's fate.

The opposition campaign draws from some of the state's most prominent technology figures. Sergey Brin of Google, Tony Xu of DoorDash, and Patrick Collison of Stripe are among the major donors. Other contributors include Chris Larsen of Ripple, along with venture capitalists John Doerr, Michael Moritz, and Vinod Khosla. Mark Zuckerberg of Meta has not directly funded the opposition, though his company’s filings revealed a strategy to help him avoid the tax. The board created a specific class of shares for Zuckerberg to use for payment, following his plan to purchase a home outside the state.

Heavy spending has fueled confusion among the electorate regarding the measure's scope. Brian Galle, an economics professor at the University of California, Berkeley, who helped draft the proposal, noted that recent mailers suggest the tax could apply to retirement savings for anyone. Galle stated those claims were not part of the original text. Ashley Craig of the pro-tax group Patriotic Millionaires reported that voters frequently cite secret provisions that would tax all residents. She noted that any future changes to the tax structure would require a two-thirds majority in the state assembly.

The campaign has exposed deep divisions within the Democratic Party. While the state party endorses the tax, ground-level support has been limited, according to Craig. Governor Gavin Newsom, who is considering a run for the presidency in 2028, opposes the measure. He described the tax as poorly written and warned it could drive billionaires out of the state. The authors of the proposal estimate the wealth of these individuals at 2.3 trillion dollars. Conversely, supporters like Senator Bernie Sanders and Congressman Ro Khanna have actively campaigned for the tax across the state.

The outcome carries weight beyond the immediate tax policy. Opponents also support two other ballot measures that could nullify the tax if they receive more votes. A recent poll from the Public Policy Institute of California shows voters narrowly support the tax but also favor the blocking measures. Suzane Jiminez of the SEIU health workers union, which sponsored the proposal, reported that 3,000 volunteers are currently knocking on doors. She expressed confidence in the campaign's ground game ahead of the final week.