Sergey Brin joins forces with Eric Schmidt to challenge California’s billionaire tax

Silicon Valley Billionaires Unite Against California Billionaire Tax

Sergey Brin, co-founder of Google, and former CEO Eric Schmidt are teaming up with some of Silicon Valley’s richest individuals to create a new organization aimed at lobbying against California’s proposed billionaire tax.

The group, dubbed Building a Better California, plans to leverage its influence by endorsing political candidates and encouraging voter participation across the state.

A primary focus for the organization is to oppose a one-time 5% wealth tax that is set for a vote this coming November.

Building a Better California has reportedly amassed $35 million in funding, which includes a substantial $20 million contribution from Brin, as highlighted in a campaign report. So far, the organization has already allocated $11 million towards initiatives promoting middle-class homeownership and initiatives to reform California’s environmental review processes.

Brin has previously reached out to fellow business leaders to gather significant funds for these influence campaigns, utilizing the encrypted messaging platform Signal to communicate with others in the tech space.

Other notable names involved in this effort include cryptocurrency billionaire Chris Larsen, venture capitalist Mike Moritz, and DoorDash co-founder Tony Hsu, along with tech investors like John Doerr, Max Levchin, and Patrick Collison. Stewart Resnick, co-owner of The Wonderful Company, has also contributed $2 million, marking the largest donation from someone outside the tech industry.

Despite the intensive campaigning, a spokesperson for Building a Better California mentioned that the group has not established a formal stance on the wealth tax as they are currently concentrating on boosting middle-class homeownership.

The organization is anticipated to advocate for the extension of a temporary tax on incomes over $250,000, which helps fund crucial services like schools and healthcare, and is due to lapse in 2030.

This proposed wealth tax has already drawn heavy criticism from tech leaders even before being put to a vote. Supported by unions such as the Service Employees International Union and the Western Health Care Workers Union, the tax would apply retroactively to anyone living in California as of January 1. It is projected to raise between $50 and $60 billion if approved.

In response to the looming tax, some of the state’s wealthiest inhabitants have begun making moves to either leave California or reduce their footprint there. Brin, for instance, has relocated several companies out of the state to Nevada and noted a Reno address on his political documentation. Similarly, Google co-founder Larry Page has migrated numerous California entities outside state lines and invested in Florida real estate worth hundreds of millions. Venture capitalist Peter Thiel has also broadened his investment reach in Florida, while investor David Sachs made a move from San Francisco to Austin, Texas, before the January 1 deadline.

Tax advisors remark that many billionaires have departed California prior to the deadline. Yet, some individuals, like Nvidia CEO Jensen Huang—one of the state’s wealthiest individuals—expressed willingness to remain, stating he is fine with paying his taxes in Silicon Valley. Real estate developer John Sobrato expects the legislation to fail but has no plans to relocate.