Sergey Brin’s $102 million helped sink California’s billionaire tax and may block the next one

California voters decisively rejected a proposed tax on billionaires in the recent election, with Proposition 42 narrowly leading in vote count. The measure, largely funded by the same billionaires, aims to prevent future attempts at such a tax and shields assets like pensions, 401(k)s, and retirement savings from new taxation. Funded primarily by Google co-founder Sergey Brin with $102 million, the committee spent over $300 million to defeat Proposition 40, a billionaire tax measure, and to pass Propositions 41 and 42.

While the billionaire tax's potential loss of wealthy residents was a concern, the actual impact of such a tax on the state's $3.3 billion to $5.8 billion annual income tax from billionaires was estimated to be minimal. Critics argue that Proposition 42's focus on protecting personal savings is misleading, as retirement savings are already partially shielded through existing tax laws and accounts like Roth IRAs.

The measure could also potentially impact a recently passed tax increase on top earners, which aims to fund education, as it might be considered a tax on "ownership or control" of personal property.