A private Signal chat among some of Silicon Valley's wealthiest individuals has been leaked, revealing their coordinated efforts to thwart a California ballot measure that would impose a 5% tax on billionaires' net worth. The chat included prominent figures such as Google cofounder Sergey Brin, venture capitalist Marc Andreessen, Stripe CEO Patrick Collison, and Coinbase CEO Brian Armstrong. Initially a forum for complaints, the group quickly shifted to strategizing, discussing options like running candidates, lobbying the governor, and even purchasing the company collecting signatures for the measure.
The Tax Measure and Its Impact
The proposed tax, backed by the SEIU United Healthcare Workers West union, would levy a one-time 5% tax on Californians with net worth exceeding $1.1 billion. Targeting approximately 200 billionaires, it aims to raise around $100 billion over five years to offset federal healthcare cuts from the Trump era. For the billionaires in the chat, the tax posed a direct personal threat, prompting intense opposition.
Failed Strategies and Poor Results
Despite their vast resources, the billionaires' campaign has largely failed. The union gathered nearly 1.6 million signatures—almost double the required amount—and the measure polls at about 50% support. Their chosen candidates performed poorly in recent primaries: San Jose Mayor Matt Mahan garnered only 3.7% of the vote, and entrepreneur Ethan Agarwal finished fourth with 6.5%. Internal divisions also hampered efforts; when the chat splintered in January, venture capitalist Ron Conway was excluded from subsequent discussions. Donations to anti-tax groups often failed to materialize, and a planned "Shark Tank in the dark" Zoom meeting was scrapped due to fears of leaks. One strategist noted, "Many of them are bold, and their tactics are stupid. None of it has worked, because they don't know what they're doing."
The June 25 Deadline
The state legislature faces a June 25 deadline to negotiate a compromise bill that could remove the measure from the November ballot. Governor Gavin Newsom, who opposes the tax but distrusts both the union and the billionaires, is reportedly rallying unions and healthcare groups against it. The California Teachers Association has already voiced opposition.
Billionaire Exodus and Reactions
Some billionaires are responding by leaving California. Brin and Google cofounder Larry Page have moved dozens of LLCs to Nevada, while Peter Thiel has relocated to Buenos Aires. Brin, who spent $57 million fighting the tax, told the New York Times he "fled socialism" as a child and fears California is heading in the same direction. However, not all tech leaders oppose the tax; Nvidia CEO Jensen Huang said he is "perfectly fine" with it. An NBER paper suggests that even if every billionaire left immediately, it would take 25 years of lost income tax to offset the revenue from the wealth tax over five years.
The billionaires have consolidated their efforts under the group Building a Better California, backed by Brin and raising over $100 million. Regardless of the outcome by June 25, Silicon Valley's money is now firmly entrenched in Sacramento's political landscape.
