The 5% freakout: Inside tech elites' war against the California billionaire tax
10 hours ago
- #California Politics
- #Silicon Valley
- #Wealth Tax
- In fall 2025, California billionaires faced a proposed ballot initiative (Billionaire Tax Act) to tax 5% of their net worth, led by SEIU United Healthcare Workers West, to replace healthcare funding.
- Billionaires organized in encrypted Signal chats, including tech elites like Sergey Brin, Marc Andreessen, and others, discussing strategies like buying signature-collection companies or funding anti-tax measures.
- The anti-tax campaign saw internal disagreements, distrust of Governor Newsom, and efforts to recruit or fund candidates (e.g., Matt Mahan, Ethan Agarwal) and create political groups (e.g., Golden State Promise, Building a Better California).
- Despite billionaire opposition, SEIU gathered nearly double the required signatures for the tax measure, which has around 50% public support, while billionaire-backed candidates largely failed in primary elections.
- The tax fight has activated tech billionaires in California politics, leading to increased organization and funding, with groups like Building a Better California raising over $100 million and qualifying counter-initiatives for the ballot.