A growing disagreement among some of Silicon Valley’s billionaires is exposing tensions inside a major campaign over California’s proposed billionaire wealth tax. At the center are Google‘s former CEO Eric Schmidt and Google co-founder Sergey Brin. Schmidt recently donated $3 million to Brin’s Building A Better California. However, he is now reportedly frustrated after the group suffered a setback with California Democrats while expanding its focus to several other ballot measures.
The billionaires tax has become a flashpoint amidst a political rift between Sergey Brin and Eric Schmidt
Brin initially formed Building A Better California to fight Proposition 40. For reference, Proposition 40 is a union-backed proposal that would impose a one-time 5% tax on Californians whose wealth exceeds $1 billion. Brin has personally put more than $100 million behind the effort. However, the campaign has grown beyond a single issue. Very recently, the campaign has taken its stand against six state ballot measures.
As is evident, Building A Better California now focuses on more than a single issue. This has led donors and advisers to worry that the broader agenda could make the organization less effective at its original goal. The disagreement became even more apparent after the California Democratic Party endorsed Proposition 40.
That’s not all; the party also rejected Propositions 41 and 42. Brin’s organization directly backed these two measures as possible safeguards against the wealth tax. Proposition 41 requires audits of programs financed through new special taxes, while Proposition 42 prohibits retroactive taxation. The coalition failed to achieve any of its three objectives, with Proposition 40 narrowly receiving the 60% support needed for party endorsement.
Brin continues to expand the campaign even as divisions surface
Building A Better California had raised $118 million through June. At that time, Brin was alone responsible for $82 million. He later added another $20 million, which took his total commitment to $102 million. The new money was split between Propositions 41 and 42 after both campaigns had spent nearly $50 million each collecting signatures and qualifying for the November ballot. The group has also invested heavily in other measures. It invested $10 million for Proposition 45, which would streamline environmental reviews for housing, transportation, water, energy, and other projects.
This wide spending pattern has led to some unusual political disagreements. Wendy Schmidt, Eric Schmidt’s wife, is campaigning against Proposition 45 alongside actress Jane Fonda because she fears it could weaken environmental protections. Moreover, Brin’s organization has contributed $6 million to Proposition 37, $1 million to Proposition 1, and additional funds to another proposed constitutional tax-and-spending measure.
Due to its large budget and commitments, the campaign is likely to remain a major force in California politics. It should remain less affected by the growing questions about its direction.
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