Google co-founder spends over $100M fighting California's billionaire tax proposal
What's the story
Google co-founder Sergey Brin has spent over $100 million fighting California's proposed billionaire tax, according to a recent filing. The world's fourth-richest man, with a net worth of about $267 billion, recently donated another $20 million to Build a Better California. The organization opposes the state's Prop 40, which would impose a one-time 5% tax on the net worth of some 200 billionaires living in California.
Tax details
Prop 40 aims to fund healthcare programs
Prop 40, also known as California's billionaire tax, aims to raise funds for the state's healthcare programs. However, Governor Gavin Newsom has expressed his opposition to the tax and instead advocated for a "national billionaires' tax."
Tax fairness
Newsom argues for ending 'tax-free lifestyle loan'
In a recent Substack post, Newsom said, "Today, the office worker can shoulder a higher tax rate than the heiress."
He further argued for ending the "tax-free lifestyle loan," a loophole allowing ultra-wealthy individuals to borrow against their stock portfolios while reporting no taxable income.
Prop 40 will be on California's ballot in November but may face competition from other initiatives that could render it moot.
Responses
How other billionaires have reacted
Other billionaires have also reacted to Prop 40.
Meta founder Mark Zuckerberg reportedly bought a $170 million mansion near Miami this year, while former Uber CEO Travis Kalanick and venture capitalist Peter Thiel have left the state.
However, NVIDIA CEO Jensen Huang has said he is "perfectly fine" with paying the tax.