A brewing feud between two of Google’s most famous billionaires could shape the fate of California’s Proposition 40, a proposed wealth tax that would hit the state’s ultra-rich with a one-time 5% levy on fortunes exceeding $1 billion.
According to a New York Post report this weekend, disagreements between Google cofounders over how to fight the measure might inadvertently help it pass in November.
Prop. 40 is structured as a retroactive tax on all wealth over $1 billion, dating back to Jan. 1, 2026. That means billionaires who fled California after that date — including several high-profile tech figures who left in 2025 before the measure even qualified for the ballot — would still be on the hook if voters approve it.
The tax applies to the appraised value of all assets: stocks, bonds, trusts, real estate, art, and more. Legal challenges are widely expected to be epic in scale.
A $118 Million War Chest
Sergey Brin appears to grasp the potential fallout better than most. The Google cofounder founded Building a Better California to oppose Prop. 40, raising $118 million for the organization — including $82 million of his own money.
Former Google CEO Eric Schmidt contributed $3 million to the effort.
But the Post’s characterization of Prop. 40 as a “union-backed measure” may be unintentionally misleading, according to critics. The driving forces behind the initiative are largely public sector unions eager for more state revenue, alongside progressive activists looking to penalize wealth.
Mission Creep Concerns
Some donors and advisers are growing frustrated that Building a Better California is suffering from mission creep, the Post reported Sunday. The organization has expanded beyond fighting just Prop. 40, backing six different state ballot measures in an effort to reshape California politics.
Insiders worry that spending in other areas — such as environmental policy — could dilute the group’s primary focus and threaten its success.
Building a Better California contributed $10 million in support of Prop. 45, which would streamline environmental reviews to reduce housing and infrastructure costs. But that puts the group directly at odds with Eric Schmidt’s wife, environmental philanthropist Wendy Schmidt, who helps lead the campaign against Prop. 45 alongside Jane Fonda.
Beyond spending on Props. 40, 41, 42, and 45, the organization has also sent $6 million to support Prop. 37, $1 million to Prop. 1, and millions more to another proposed constitutional tax-and-spending measure.
What Are You For?
Other billionaire opponents of the wealth tax are increasingly concerned about the group’s tactics.
“This is about not only what are you against,” a source told the Post, “but what are you for?”
Critics argue that Brin would be better served focusing like a laser on Prop. 40 itself, particularly because of confusing language buried in the initiative that could eventually dip into the savings and retirement accounts of Californians worth far less than a billion dollars.
Prop. 40 allows the state Legislature to adjust the tax to apply to people of any net worth by a two-thirds vote, plus the governor’s signature — without requiring another ballot measure. The only constraint is that the change must be deemed “consistent with and furthers the purposes” of the proposition.
Since the stated purpose of Prop. 40 is to raise money for state healthcare and education spending — areas heavily influenced by public sector unions that effectively control Sacramento politics — critics warn it would be easy for the Assembly to extend the tax far beyond billionaires should the measure pass.
The lesson may not require a billion dollars to understand, but the question remains whether California voters will learn it before the November election.
Source: pjmedia.com — https://pjmedia.com/vodkapundit/2026/08/17/pop-your-corn-its-billionaire-vs-billionaire-for-the-future-of-california-n4956221
This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Do your own research and consult a licensed professional before making financial decisions.
