Sergey Brin, co-founder of Google, has contributed an additional $20 million to Build a Better California, a group opposing the proposed billionaire tax in the state. This latest donation brings his total spending to over $100 million to evade an estimated tax liability of $13.3 billion, as he ranks as the fourth richest person globally, with a net worth around $267 billion.
California’s Proposition 40, commonly referred to as the billionaire tax, aims to levy a one-time 5% tax on the wealth of approximately 200 billionaires residing in the state. The funds generated would primarily be allocated to support healthcare initiatives in California, especially as the state’s Medicaid program is projected to face a loss of up to $30 billion in federal assistance following budget cuts slated for next year.
Brin is not alone in his attempts to sidestep this tax; notable tech figures such as Meta’s Mark Zuckerberg have notably purchased properties outside California, including a $170 million estate near Miami. Others, like former Uber CEO Travis Kalanick and venture capitalist Peter Thiel, along with Brin’s fellow co-founder Larry Page, have also relocated from the state.
The proposed tax has sparked concern from California Governor Gavin Newsom, who worries about the potential negative economic ramifications of billionaires and their companies leaving the state. In response, Newsom has advocated for a “national billionaires’ tax.”
“Currently, an office employee could be paying a higher tax rate than an heiress,” Newsom expressed in a recent blog. “We need to put an end to the ‘tax-free lifestyle loan,’ a loophole allowing the ultra-wealthy to borrow against their stock holdings without any taxable income.”
Californians are set to vote on Proposition 40 in November. The organization supported by Brin is advocating for opposing ballot measures which could hinder the implementation of Prop 40 by restricting the ability to introduce new taxes.
Conversely, Jensen Huang, co-founder of Nvidia and an unexpected voice for the working class, has stated he is “perfectly fine” with paying the proposed tax.
“I haven’t given it a moment’s thought,” Huang mentioned in a January interview with Bloomberg, acknowledging that his potential tax bill could be around $8 billion. “We chose to make our home in Silicon Valley, and whatever taxes are imposed, I accept them.”
