Tech billionaires vastly outspend wealth tax supporters
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billionaires → outspend → supporters
More than $351 million in political donations has been poured into a high-stakes contest about a proposed wealth tax on the November ballot, making it one of the most costly campaigns in California history.
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it → pour → history
About 90% of the money is being spent to defeat a statewide initiative to impose a new tax on the assets of billionaires, a multifaceted opposition effort bankrolled primarily by ultra-rich Californians being targeted by a measure that supporters call an economic reckoning.
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supporters → spend → that
The billionaire tax, Proposition 40, would levy a one-time, 5% tax on many assets of California billionaires who lived in the state as of Jan. 1.
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who → levy → Jan.
Millions of dollars continue to flow into the campaigns of three intertwined ballot initiatives at the center of the debate: Proposition 40, and Propositions 41 and Proposition 42, which would neuter the Proposition 40 through strategic, esoteric tax law changes.
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which → continue → changes
“The pro-40 campaign picked a fight and then came to that fight with a butter knife against a nuclear arsenal,” said GOP strategist Rob Stutzman, who is not involved in any of the wealth-tax-related ballot measures.
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who → pick → measures
“Because they’re so well funded, in today’s multifaceted media world, they are able to show up everywhere from network TV to inside video games.
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they → ’re → games
That is a very, very large advantage few campaigns ever get to have.
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campaigns → get → ?
But, Stutzman warned, money does not guarantee a win.
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money → warn → win
In the most expensive ballot measure fights in California history, $463 million was spent on two gambling proposals 2022.
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million → spend → proposals
The initiatives pitted some of California’s most successful Native American tribes with gaming interests against gambling corporations, including online sports gaming companies DraftKings and FanDuel.
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initiatives → pit → companies
Both side’s measure failed.
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measure → fail → ?
The tax measure was crafted by Service Employees International Union-United Healthcare Workers West in response to federal healthcare funding cuts signed by President Trump last year that are expected to reduce California’s healthcare budget by $100 billion, burdening the state’s most vulnerable residents.
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that → craft → residents
“Trump’s ‘Big Beautiful Bill’ slashes healthcare funding, with major coverage cuts scheduled to hit after the midterms,” said Suzanne Jimenez, the union’s chief of staff.
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Jimenez → slash → staff
“More than 3 million Californians could lose their health insurance.
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Californians → lose → insurance
Hospitals and emergency rooms face closure.
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Hospitals → face → closure
Patients will die unnecessarily when the care they need is no longer there.
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they → die → ?
Proposition 40 is an emergency response to that looming disaster.”
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Proposition → loom → disaster
The proposition’s supporters raised $34.3 million, nearly all of it from Jimenez’s union.
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supporters → raise → union
The two other measures, Propositions 41 and 42, would nullify the billionaire tax if either receives more votes.
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either → nullify → votes
Proposition 41 supporters say the measure aims to cut wasteful government spending by requiring audits for new state special taxes and would bar new state taxes that exempt their revenue from a state spending limit.
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that → say → limit
Backers of Proposition 42 argue it would prohibit new taxes on retirement holdings, individually owned assets and other forms of personal savings.
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it → argue → savings
Advocates for the billionaire tax say both are well-financed smokescreens to undercut Proposition 40.
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both → say → Proposition
Opposition campaigns to the wealth tax as well as the two countermeasures have received enormous donations from several of the state’s billionaires.
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campaigns → receive → billionaires
But Building a Better California, the main funder of efforts to defeat the wealth tax, noted that its allies included Democratic and Republican politicians, prominent labor groups and business leaders.
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allies → defeat → politicians
“It’s rare for such a broad coalition to unite around any single cause in California, but it reflects the potentially devastating impact of this measure on healthcare, education, and our state’s economy,” the group said in a statement.
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group → ’ → statement
Among the largest donors opposing the wealth tax are billionaires Sergey Brin, a co-founder of Google who has donated more than $100 million to anti-wealth-tax efforts, and former Google leader Eric Schmidt and venture capitalist L. John Doerr, who each kicked in $40 million.
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who → oppose → million
Brin, Schmidt and Doerr did not respond to requests for comment.
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Brin → respond → comment
The spending disparity also reflects a divide among Democrats and their allies, many of whom support wealth taxes, but argue that the way Proposition 40 was written is disastrous to California’s volatile budget, which is dependent on the state’s wealthiest residents.
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which → reflect → residents
Jodi Hicks, chief executive and president of Planned Parenthood Affiliates of California, said that while her organization would support a nationwide or a California wealth tax, their primary concerns are about 40’s impacts on the state budget and healthcare in the state.
“We are opposed to this particular proposal because we think it does more harm than good,” she said, adding that after what her organization “faced last year having to scramble for dollars because of [federal funding cuts] we are committed to work with the stakeholders facing cuts and not harming the budget and finding revenue in a smart way.”
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we → say → way
Those opposed to the measure raised $316.7 million, while proponents raised nearly $34.3 million.
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proponents → oppose → million
The supporters of the wealth tax spent nearly all of their money gathering signatures to place the measure on the ballot.
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supporters → spend → ballot
They had $1.6 million on hand as of Oct. 17.
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They → have → Oct.
Now, as voters cast ballots, their campaign appears reliant on public events and media coverage, such as of Sen. Bernie Sanders’ (I-Vt.) recent rally in support of Proposition 40 in downtown Los Angeles.
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campaign → cast → Angeles
“What you are showing people from coast to coast and all over is that, yes, we can take on the greed of the oligarchs,” he said, calling it the most important ballot measure in the country.
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he → show → country
“Yes, we can create an economy and a government that works for all of us, not just the 1 percent.”
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that → create → us
Labor leaders argue that the billionaires tax includes a loophole that would allow state lawmakers to tax the savings and retirement accounts and home equity of all Californians.
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lawmakers → argue → Californians
Facebook creator and Meta chief Mark Zuckerberg was among the California billionaires Sanders name-checked in his remarks.
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Sanders → check → remarks
After Zuckerberg told company leaders that he planned to leave the state to avoid his control over the company substantially reduced by being forced to sell enough of his stock in the social media giant to pay the proposed levy, the company on Wednesday announced the creation of a new, non-voting type of stock that would allow Zuckerberg to sell enough shares to pay the proposed tax while retaining his voting power in exchange for him agreeing to remain in the state for eight years.
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him → tell → years
The pro-wealth-tax campaign is sending voters emails and texts and has an online presence.
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campaign → send → presence
…and 15 more, not listed.
The Aporia
