Politics 4 min read By Bethany Hadley
Eric Schmidt and Sergey Brin clash over $100m campaign against California billionaire tax
The former Google CEO and co-founder are reportedly at odds over how funds from their anti-tax coalition are being spent, after California Democrats endorsed the wealth-tax measure they oppose.
Eric Schmidt and Sergey Brin, two of the most influential figures in the history of Google, are reportedly at odds over how to deploy a $100 million campaign against California’s proposed billionaire wealth tax. The disagreement, first reported by the New York Post, centres on the effectiveness and strategy of the political coalition the two men have heavily funded, and comes after California Democrats formally endorsed the tax measure despite the opposition campaign.
The coalition, organised under the banner of Building a Better California, has spent more than $100 million in an attempt to defeat Proposition 40, a ballot measure that would impose a one-time 5% tax on the net worth of California residents exceeding $1 billion as of January 1, 2026. The state’s Legislative Analyst’s Office estimates the tax would affect only a few hundred individuals but could generate tens of billions of dollars in revenue. The proposition is backed by SEIU United Healthcare Workers West and has been championed by prominent Democratic figures including Senator Bernie Sanders and Congressman Ro Khanna.
According to an advisor to Schmidt, the former Google chief executive is frustrated that his contributions are being used to oppose measures beyond the billionaire tax, including Proposition 45, an environmental policy initiative. The advisor told Fortune that Schmidt’s “only current involvement in politics is his contributions to defeating the billionaires tax,” suggesting the divergence stems from his funds being directed toward other political battles. The report also indicates Schmidt is unhappy with the coalition’s political effectiveness, given that California Democrats endorsed the tax and rejected two counter-measures backed by the billionaires.
Those counter-measures, Propositions 41 and 42, were also funded through Building a Better California. Proposition 41 would require state audits of programmes funded by new special taxes, making it harder for the state to use revenue raised by the billionaire tax. Proposition 42 would outlaw retroactive taxation, directly countering Proposition 40 and effectively killing the wealth tax if passed. Despite the party’s endorsement of the tax, both propositions will still go before voters in November. The party narrowly passed the endorsement threshold at 61.7%.
Brin has supplied the majority of the funding for the political organisation he helped establish, contributing over $100 million. Schmidt has contributed over $3 million. Other notable financial backers include venture capitalist John Doerr, who contributed $7.5 million; Ripple executive chair Chris Larsen, who contributed $10 million; and Stripe CEO Patrick Collison, who contributed $7 million. The scale of the funding reflects the high stakes for the state’s wealthiest residents, many of whom would be directly affected by the tax.
Schmidt’s personal financial interest in the outcome is substantial. He served as Google’s CEO from 2001 to 2011 and later as executive chairman, building a fortune largely through the technology industry. Bloomberg estimates his wealth at $58.1 billion, placing him among the individuals who could be subject to the tax. Other billionaires have also publicly opposed the measure, with Mark Cuban and Anduril Industries co-founder Palmer Luckey both engaging in public disputes with Congressman Khanna over its implications. Schmidt did not immediately respond to a request for comment.
