Meet the venture capital and crypto billionaires quietly bankrolling the fight against California’s wealth tax

Venture capital and cryptocurrency leaders are quietly funding a political fight against California's proposed wealth tax. Palantir co-founder Peter Thiel, crypto billionaire Chris Larsen, Google co-founder Sergey Brin, and venture capitalist John Doerr all donated to political action committees opposing Proposition 40, which would tax billionaires at 5% of their wealth if approved.

Thiel and Brin have reduced their ties to California, while Larsen and Doerr have given significant amounts to committees opposing the tax. The measure, if passed, would raise $100 billion for the state over five years, with 90% earmarked for healthcare and education. Critics argue the tax could push billionaires to leave California, stifling innovation and talent.

Some experts argue the tax is fair for those who built their wealth in California and can absorb a one-time hit, especially if paid gradually. Federal legislation has also been introduced to tax Americans worth over $1 billion annually, with some of the proceeds earmarked for lower- and middle-income households.