Tech Billionaires Fight California Billionaire Tax
A coalition of technology executives and investors has raised over $340 million to oppose a proposed state tax measure.
Updated on Oct. 16, 2026 in Philanthropy
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Tech leaders are spending more than $1 million per day to campaign against California Proposition 40. The measure would enact a one-time 5 percent tax on billionaires residing in the state.
Why it matters
High-profile Silicon Valley donors are mobilizing significant capital to defeat a policy that directly targets the wealth of the state's ultra-high-net-worth individuals. The massive funding underscores the tech industry's active involvement in California's legislative outcomes.
The campaign has secured over $340 million in contributions to date, with daily operational spending exceeding $1 million. The tax proposal would impose a 5 percent one-time levy on billionaires in California.
The players
Sergey Brin
He is a computer scientist and internet entrepreneur who co-founded Google.
Peter Thiel
He is a venture capitalist and co-founder of PayPal and Palantir Technologies.
Eric Schmidt
He is a businessman and software engineer who formerly served as the CEO of Google.
Tony Xu
He is a technology executive and the co-founder and CEO of DoorDash.
Patrick Collison
He is an Irish entrepreneur who co-founded the financial services company Stripe.
The details
Prominent tech figures, including Sergey Brin, Peter Thiel, Eric Schmidt, Tony Xu, Patrick Collison, and Chris Larsen, have contributed to the opposition fund. Sergey Brin alone is credited with donating at least $102 million to the effort.
Timeline
Campaign spending against Proposition 40 is ongoing throughout 2026.
Market Landscape
This coordinated fundraising effort highlights the increasing influence of Silicon Valley wealth on California's fiscal policy debates. The move mirrors past instances where the tech industry has mobilized its capital to influence state-level regulatory and tax environments.
The massive influx of spending means California voters will likely encounter significant advertising related to the tax proposal. The outcome of the measure could affect state revenue and the financial landscape for the ultra-wealthy in the region.
The takeaway
The sheer scale of this fundraising indicates that the tech industry views Proposition 40 as a major threat to its economic interests in California. Voters should pay close attention to how such heavy campaign spending influences the final public policy debate.
Further reading
Learn more about the influence of private funding in local elections at California Philanthropy.
Source note: This article includes information reported by The Verge.
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Should states implement a one-time wealth tax on billionaires?
