Prop 40 wealth tax a target of California billionaires' $612 million election spending
In brief
- California billionaires have contributed a combined $612 million to state elections, per Crypto Briefing.
- Proposition 40 would levy a one-time 5% tax on billionaires' net worth.
- Sergey Brin, Eric Schmidt and L. John Doerr were named as opponents of the tax.
- Propositions 41 and 42 could nullify Proposition 40 if either receives more votes.
- Californians vote on Proposition 40 on November 3.
What Proposition 40 would do
Proposition 40 is the wealth tax that's drawing the spending. According to Crypto Briefing, the initiative would impose a one-time 5% tax on the net worth of billionaires residing in California as of January 1, 2026. It's a single levy, and it's pegged to a fixed residency date.
The $612 million figure covers billionaire contributions to state elections overall. The report said a significant portion went toward opposing the tax (not necessarily all of it).
Who's paying to stop it
The report named Sergey Brin, Eric Schmidt and L. John Doerr as notable contributors against the tax.
The campaign isn't only asking voters to reject 40. The opposition effort also backs Propositions 41 and 42, and either one could nullify Proposition 40 if it received more votes. That gives opponents two ways to win: defeat the wealth tax outright, or get 41 or 42 to outpoll it on the same ballot.
It's a hedge built into the ballot itself.
Markets and the November 3 vote
Crypto Briefing also pointed to trading activity, writing:
Market activity suggests the substantial financial opposition is impacting the expected outcome of the wealth tax vote.
The report didn't name a specific market or attach a figure to that claim, so there's no way to size the effect from the article alone. Readers watching odds on the outcome don't get a number to anchor to.
Spending isn't the only variable. The report said key political figures, including Governor Gavin Newsom, may play a decisive role in the result.
Californians vote on November 3.
Frequently asked questions
What is California's Proposition 40?
Proposition 40 is a ballot initiative that would impose a one-time 5% tax on the net worth of billionaires residing in California as of January 1, 2026. Voters decide on it on November 3.
How could Propositions 41 and 42 affect the wealth tax?
The opposition campaign against the wealth tax also backs Propositions 41 and 42. According to Crypto Briefing, either measure could nullify Proposition 40 if it received more votes.
Who is funding the opposition to California's wealth tax?
Crypto Briefing named Sergey Brin, Eric Schmidt and L. John Doerr as notable contributors against the tax. California billionaires contributed a combined $612 million to state elections, with a significant portion aimed at opposing the measure.
