America’s tech elite hold their breath as California awaits billionaire tax vote
Tech leaders fund opposition
The vote has intensified a dispute that has unsettled Silicon Valley executives for months. Google cofounder Sergey Brin, former Google CEO Eric Schmidt, Affirm CEO Max Levchin, Stripe CEO Patrick Collison, DoorDash CEO Tony Xu, Kleiner Perkins Chairman John Doerr and angel investor Chris Larsen have together contributed millions to the opposition campaign. Brin has donated more than $100 million to the “No” campaign, according to Cal Matters.
Huang says he is prepared
Some technology executives are making plans in case the tax takes effect. Nvidia CEO Jensen Huang said in a January appearance on Bloomberg TV that he had not considered it before. “Whatever taxes they would like to apply, so be it,” Huang said, adding that he was fine with the possibility.
Assets and possible limits
Prop. 40 would cover wealth held in business ownership stakes, securities, investment accounts, art, collectibles and intellectual property, among other assets. Real estate, pensions and retirement accounts would generally be left out.
Propositions 41 and 42 were designed to weaken Prop. 40 through additional auditor reviews and restrictions on taxes applied to certain assets.
Timing and projected revenue
If the measure passes, the tax would be due in 2027. Taxpayers could instead spread payments over five years, but at a higher cost. Supporters of Prop. 40 say the tax could bring in more than $100 billion for California.
Key points
- Sergey Brin has given more than $100 million to the opposition campaign, according to Cal Matters.
- Nvidia CEO Jensen Huang said he was prepared to accept whatever taxes California applies.
- The proposal includes business stakes, securities, art and intellectual property among taxable wealth.
- If approved, the tax would be due in 2027, with a five-year payment option at higher cost.