Sergey Brin, co-founder of Google, has contributed an additional $20 million to Build a Better California, an organization that opposes a proposed billionaire tax in California. This information comes from a recent filing. With this donation, Brin, who is the fourth-richest person globally with a net worth of approximately $267 billion, has spent over $100 million to potentially avoid a tax bill estimated at $13.3 billion.
The proposed billionaire tax, known as California’s Prop 40, would apply a one-time 5% levy on the net worth of about 200 billionaires residing in the state. Revenue generated from this tax is intended to primarily support California’s healthcare initiatives. Specifically, the state’s Medicaid program could face a loss of up to $30 billion in federal funding due to upcoming budget cuts under Trump’s administration.
Sergey Brin is not alone in seeking ways to circumvent this tax. Meta founder Mark Zuckerberg’s purchase of a $170 million estate near Miami earlier this year aligns with this trend. Other notable figures such as Travis Kalanick, Peter Thiel, and Brin’s Google co-founder Larry Page have also exited the state.
Governor Gavin Newsom has expressed concerns about the economic repercussions of these billionaires and their enterprises leaving California. Instead of Prop 40, Newsom advocates for a “national billionaires’ tax.”
“Today, the office worker can shoulder a higher tax rate than the heiress,” Newsom stated in a blog post. “We should end the ‘tax-free lifestyle loan,’ the gimmick that lets the ultra-wealthy borrow against their stock portfolios while reporting no taxable income.”
Californians are set to vote on Prop 40 in November. The group funded by Brin has introduced counter ballot measures that could potentially hinder Prop 40 by restricting new tax implementations.
In contrast, Jensen Huang, co-founder of Nvidia, has expressed a willingness to comply with the tax, referring to himself as an “unlikely working-class hero” for his stance.
“I have not even thought about it once,” Huang remarked in a January interview with Bloomberg. “We chose to live in Silicon Valley, and whatever taxes they would like to apply, so be it. I’m perfectly fine with it.”
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