California billionaires have contributed $40 million to Building a Better California, a political action committee opposing Proposition 40, a one-time 5% tax on net worth exceeding $1 billion. The latest campaign finance filing on August 14 shows venture capitalist John Doerr donated $7.5 million, while Ripple executive chair Chris Larsen added $10 million to the group’s funds, according to fortune.com.
Building a Better California was established earlier this year to counter the proposed tax aimed at increasing healthcare funding in the state. Alongside Doerr and Larsen, multimillionaires such as Lookout co-founder John Hering and Greenoaks Capital founder Neil Mehta contributed $946,000 and $250,000 respectively. The PAC’s endowment reached $110 million by late June, reflecting significant financial backing from wealthy Californians concerned about the tax’s impact on their assets.
Proposition 40 would impose a one-time 5% tax on California residents with over $1 billion in assets, targeting billionaires to fund healthcare initiatives. The measure has drawn sharp opposition from affluent individuals who argue it threatens their financial interests. A recent UC Berkeley Institute of Governmental Studies poll indicates voter opinion remains divided on the proposal, underscoring the contentious nature of the tax ahead of the November vote.
The next major milestone for Proposition 40 is the November ballot, when California voters will decide whether to approve the billionaire tax. Building a Better California’s substantial war chest positions it as a key player in the campaign to defeat the measure, with the group’s latest contributions totaling $40 million as of mid-August.