Source: Fortune
Summary
Silicon Valley billionaires, including Peter Thiel, Chris Larsen, Sergey Brin, and John Doerr, are donating millions to oppose California’s proposed wealth tax, Proposition 40. The tax would levy a one-time 5% tax on billionaires’ wealth, estimated to raise $100 billion for the state. The donors have contributed to political action committees, with Larsen giving $5 million and Brin and Doerr donating through their company, Building a Better California. The proposed tax has sparked debate about whether it would drive founders and investors out of the state.
Our Reading
The numbers tell one story. Silicon Valley’s biggest names are spending millions to avoid a one-time tax on their wealth. Palantir cofounder Peter Thiel, who officially left California in 2025, has donated to the opposition through the California Business Roundtable Issues PAC. Google cofounder Sergey Brin, who has reduced his ties to the state, has also contributed to the effort. The tax’s supporters, including Rep. Ro Khanna, argue it’s a fair ask from billionaires who built their fortunes in California.
Original observation: The California wealth tax debate has become a proxy fight over what it means to be a billionaire in America.
