California Billionaires Fund $40 Million Campaign Against Wealth Tax

California's wealthiest residents have collectively contributed $40 million to a political action committee (PAC) named Building a Better California, aimed at defeating Proposition 40, a proposed one-time 5% wealth tax. This initiative seeks to levy a tax on California residents possessing over $1 billion in assets, with the revenue earmarked for healthcare funding. The significant financial backing underscores the serious concern among billionaires regarding the potential impact of this tax on their net worth. Among the prominent donors, venture capitalist John Doerr contributed $7.5 million, and Chris Larsen, executive chair of blockchain company Ripple, added $10 million to the PAC. Forbes estimates Doerr's net worth at approximately $22.6 billion and Larsen's at $11.4 billion. Other notable contributions include $946,000 from John Hering, co-founder of cybersecurity firm Lookout, and $250,000 from Neil Mehta, founder of Greenoaks Capital. As of late June, Building a Better California had amassed an endowment of $110 million, reflecting a concerted effort by wealthy individuals to counter the proposed tax. The effectiveness of these efforts is yet to be determined, as public opinion on Proposition 40 appears divided. A recent poll conducted by UC Berkeley’s Institute of Governmental Studies surveyed over 4,000 registered voters, revealing that 48% support the measure, while 41% oppose it. The poll also indicated partisan divides in support, with registered Democrats overwhelmingly backing the tax, while 80% of Republicans stated they would not support it. Unaffiliated voters showed a more moderate split, with 50% expressing support. The outcome of this closely contested initiative may hinge on the ability of opponents to sway undecided voters and potentially gain traction among unaffiliated demographics. The proposed tax, if approved, would represent a significant new revenue stream for California's healthcare system, while simultaneously imposing a substantial financial obligation on the state's wealthiest citizens. The campaign finance filings, reported by the Financial Times on August 14, detail the substantial financial resources being mobilized by both proponents and opponents of the wealth tax, highlighting the high stakes involved in this electoral battle. The initiative's success or failure will have considerable implications for both public services and the financial landscape for ultra-high-net-worth individuals in California.