Building a Better California Fights Billionaire Wealth Tax

Building a Better California, a political organization led by strategist Ned Wigglesworth, is campaigning to defeat Proposition 40 in the November election. The ballot measure would impose a one-time 5% tax on California residents worth at least $1 billion, targeting approximately 200 individuals to generate an estimated $100 billion. These funds are primarily intended to support health care services following federal Medicaid cuts.

The opposition campaign has secured substantial financial backing from Silicon Valley, including more than $100 million from Google cofounder Sergey Brin. The group has reserved $87 million for advertising to persuade voters against the measure. Governor Gavin Newsom also opposes the tax, arguing that it risks damaging the state's tax base, noting that the top 1% of residents provide nearly half of California's personal income tax revenue.

Some high-net-worth individuals, including Sergey Brin and Larry Page, moved out of the state prior to the January 1 eligibility cutoff to avoid the potential tax.