According to Business Insider, Google cofounder Sergey Brin led a group of tech billionaires in donating a combined $35 million in January to ballot measure committees. The funds, disclosed by the coalition “Building a Better California,” support affordable housing initiatives. Brin was the largest single contributor, giving $20 million, while former Google CEO Eric Schmidt donated $2 million and PayPal cofounder Max Levchin gave $1 million. Other donors included DoorDash’s Tony Xu and Stripe’s Patrick Collison. The donations come ahead of a contentious vote on a proposed one-time 5% tax on California billionaires, which would be levied in 2027 but applied retroactively starting January 1 of this year.
Wealth Tax Wars
So here’s the thing: this isn’t just philanthropy. It’s a strategic, pre-emptive strike. Groups like the one Brin funded are explicitly trying to “negate the need for the wealth tax” by funding alternative programs or opposing political action committees. They’re basically trying to prove that private, voluntary donations can solve public problems better than a mandatory tax. But let’s be real—$35 million from a handful of billionaires is a rounding error compared to what a 5% tax on their collective net worth would generate. It’s a political statement, and a costly one.
The Silicon Split
The reaction from tech’s elite is fascinatingly split. On one side, you’ve got Nvidia’s Jensen Huang saying he’s “perfectly fine” with the tax, arguing Silicon Valley’s talent is worth the price. That’s a rare public stance. On the other, you have the more defensive maneuvers. Brin and Larry Page moved an LLC to Delaware in December. LinkedIn’s Reid Hoffman calls the tax “horrendous” for innovation, and Palantir’s Peter Thiel reportedly donated $3 million in December to a group directly fighting the measure. It’s a classic divide: the pragmatists who see it as a cost of doing business versus the libertarians who see it as existential.
What Happens Next?
This is just the opening salvo. If the wealth tax measure gains traction, expect the donation numbers to get much, much larger. And the tactics will evolve beyond ballot initiatives. We’ll see more legal challenges, more high-profile companies or individuals “re-domiciling,” and a full-blown lobbying war. The argument will hinge on a simple question: does this tax drive innovation and capital out of California, or is it a fair contribution from those who’ve benefited most from the state’s ecosystem? I think the billionaires’ current strategy—throwing money at popular causes like housing—is smart PR. But will it be enough to convince voters? That’s the billion-dollar question.
