California voters face $300 million campaign against one-time asset tax

California residents will vote on November 3 on a proposal to collect a one-time 5 percent tax from individuals with net worthes exceeding one billion dollars. The effort to stop the measure, designated as Proposition 40, has drawn in more than $300 million from wealthy donors. This figure marks the highest spending total ever recorded for a single ballot measure, according to David McCuan, a political science professor at Sonoma State University who monitors state and local elections. In contrast, the groups advocating for the tax have raised only $32 million.

The opposition includes prominent figures from the technology sector. Google co-founder Sergey Brin, DoorDash founder Tony Xu, and Stripe co-founder Patrick Collison are among the major contributors. The group also includes Ripple co-executive chairman Chris Larsen and venture capitalists John Doerr, Michael Moritz, and Vinod Khosla. Mark Zuckerberg, the founder of Meta, has not contributed personal funds to the campaign. However, Meta’s filings with the Securities and Exchange Commission reveal that Zuckerberg told the company’s board he intends to purchase a residence outside the state to avoid the levy. The board subsequently created a new class of shares that Zuckerberg could use to settle any payment, a move designed to prevent fluctuations in Meta’s stock price.

The volume of advertising and direct mail has created confusion among voters. Brian Galle, an economics professor at the University of California at Berkeley who helped draft the proposal, received a flyer claiming the tax could apply to retirement savings. He stated that such provisions were not included in the original text. Ashley Craig, a volunteer for the pro-tax organization Patriotic Millionaires, reported frequent inquiries from voters who believe the measure contains hidden clauses that would tax everyone. Craig noted that modifying the tax would require a two-thirds majority in the state assembly and must align with the core intent of the proposal.

Galle described the spending disparity as evidence of the very issue the tax seeks to resolve. He cited the Supreme Court’s decision in Citizens United v FEC, noting that billionaires are using their capital to counter the measure designed to equalize democracy. Francesco Trebbi, a professor at Berkeley’s Haas School of Business, characterized the contest as a struggle between Sergey Brin and millions of Californians, arguing that the dynamic erodes public trust in the system.

The dispute has also revealed divisions within the Democratic Party. The state party has endorsed the tax, yet Craig said the organization has provided limited ground support. McCuan described the measure as a test of strength between progressive and moderate factions. He suggested that a victory could inspire progressive candidates to propose similar ideas during the 2028 presidential race. Governor Gavin Newsom, who is considering a run for the presidency in 2028, opposes the tax. He described the proposal as poorly written and warned it could harm the state if billionaires leave. Gubernatorial candidate Xavier Becerra and former congresswoman Katie Porter also oppose the measure.

Opponents have also funded two additional ballot measures. One would prohibit new state taxes on personal property or retroactive taxes. The other requires state auditors to review the financial impact of proposed tax measures before a vote. If either of these measures passes with more votes than the billionaire tax, it could effectively negate Proposition 40 even if voters approve the levy.

A recent poll by the Public Policy Institute of California found that voters narrowly support the tax, while also backing the two measures designed to block it. Mark Baldassare, the institute’s statewide survey director, noted that only about one-third of citizen initiatives pass, placing the burden on the yes side. He plans to conduct another poll as voters receive official state guides explaining the measures.

Suzane Jiminez, chief of staff at the SEIU health workers union, which sponsored the measure, expressed confidence in the campaign. She reported that 3,000 volunteers have recently knocked on doors and distributed flyers across the state. Senator Bernie Sanders and Congressman Ro Khanna have also rallied support. McCuan suggested that even a defeat could benefit the backers, who could blame moderate Democrats and use big tech as a political target in future elections.