In California, the conflict over introducing a so-called "billionaire tax" is intensifying. Ultra-high-net-worth individuals are pushing a counter ballot measure in protest against the state's tax initiative and have launched a drive to gather signatures.
On the 25th, the Wall Street Journal (WSJ), citing California state disclosures, reported that a group called Building a Better California has raised about $80 million (120.5 billion won) in donations since January this year, of which $45 million came from Google President of Technology Sergey Brin's personal funds.
The group nominally advocates addressing long-term policy issues such as housing costs, but in reality has poured more than $33 million into three citizen initiatives targeting the introduction of a California wealth tax, effectively leading an anti-wealth tax campaign.
Earlier, California, the cradle of American innovation, signaled the first vote on a wealth tax since the nation's founding. The tax targets billionaires among California residents who hold $1 billion (about 1.5062 trillion won) or more in asset and centers on a one-time payment of 5% of the asset. Supporters say the revenue could offset losses from federal Medicaid cuts.
However, asset owners are seeking to neutralize the tax by advancing a counter initiative that includes limits on the use of tax revenue, stronger additional audit requirements, and a ban on retroactive taxation. They are offering up to $15 in compensation per valid signature, one of the highest rates this year. To get an initiative onto the November ballot, about 1.3 million valid signatures must be secured, taking invalids into account, and with roughly six weeks left until the submission deadline, it appears substantial funding has been deployed.
This high-compensation strategy is viewed as a traditional way to meet signature targets in a short period, but it is also driving up market rates for pay. In fact, the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), which is pushing for the wealth tax, paid about $5 per signature as of late January, but recent signature campaign pay has hovered in the $12–$15 range. Ballot consultant Brandon Castillo emphasized, "You have to pay to be competitive."
Political and business figures are also actively stepping in to block the tax. Venture capitalist John Doerr raised $9.5 million, while Sequoia Capital Chairman Michael Moritz and Stripe Chief Executive Officer (CEO) Patrick Collison each raised $7 million. Former Google CEO Eric Schmidt is also said to have provided more than $3 million.
By contrast, the labor union pushing the wealth tax is reducing its expense burden by relying on unpaid signatures from thousands of health care workers. SEIU-UHW Secretary-Treasurer Susan Jimenez said, "A handful of billionaires are inflating the cost of the signature-gathering phase," adding, "5,000 union health care workers are volunteering to collect signatures without pay, easing the burden." They have currently secured about 25% of the required signatures.
Meanwhile, Gavin Newsom, the California governor, a progressive politician seen as a leading Democratic presidential contender, expressed a negative view of the wealth tax. He said that while he supports a progressive tax structure, he is concerned that introducing a wealth tax could lead to out-migration of high earners and long-term revenue declines.
In fact, a large-scale "exodus" is already underway in California. David Sacks, a Silicon Valley venture investor who serves as special adviser for artificial intelligence (AI) and virtual asset policy in the Trump administration, said he moved his residence from San Francisco to Texas, and Uber co-founder Travis Kalanick was also reported to have relocated to Texas in December.