The strategist behind opposition to California's billionaire tax
A former reformer now leads billionaires' fight against wealth taxation.
1The reformer's transformation
Ned Wigglesworth, who two decades ago criticized the 'billionaire boys' club' as a campaign finance reformer, is now the chief strategist for 'Building a Better California' opposing a one-time 5% wealth tax on the state's richest. Google co-founder Sergey Brin has donated $100 million to the campaign preparing for November's vote. The group has reserved $87 million in advertising against Proposition 40.
2Billionaires' tax exodus
If Proposition 40 passes, approximately 200 billionaires residing in California as of January 1 would face a one-time 5% levy on their net worth. Google founders Larry Page and Sergey Brin left the state before the cutoff date, acquiring $225 million in Miami real estate. Brin would owe $13 billion if the measure passes. The tax has sparked debate about wealthy residents fleeing California.
3The reality of political financing
Wigglesworth warned in 2005: 'Very wealthy special interests spend $150 million to defend their turf or improve their bottom line.' Today, California's 15 richest billionaires have contributed $336 million to state and federal elections this year. Brin, Marc Andreessen and Chris Larsen accounted for $331 million of that total. The sums dwarf what Wigglesworth cautioned about 20 years ago.
4$100 billion healthcare fund
Supporters claim the tax could generate about $100 billion, mostly earmarked for healthcare after federal Medicaid cuts. Opponents have reserved $87 million in advertising. Governor Gavin Newsom opposes the measure, noting nearly half of California's personal income tax revenue comes from the top 1%. He advocates higher federal taxes on the ultrawealthy while resisting state-level wealth taxes.
5Tax base jeopardy
Venture capitalist Vinod Khosla warned California could permanently damage its tax base if wealthy residents flee, though he has no plans to leave. The potential exodus threatens the state's budget balance. Newsom walks a tightrope between addressing inequality - a potent issue for Democrats - and maintaining California's financial stability that relies heavily on its wealthiest residents.
6The paradox of California politics
Wigglesworth's career shift mirrors California's fundamental tension: The state hosts extraordinary wealth concentration while hungering to tax it, yet remains dependent on the wealthy individuals and companies behind that prosperity. Newsom embodies this contradiction - opposing the billionaire tax while calling to 'democratize our economy' amid AI-related job loss concerns.
7The billionaire whisperer
The San Francisco Standard dubbed Wigglesworth a 'billionaire whisperer.' Anonymous sources describe him as a product of Sacramento lobbying. As CEO of Spectrum Campaigns for over 10 years, Wigglesworth has held senior positions at communication firms throughout his career. His client portfolio has visibly shifted toward billionaire interests over time.
8California's conundrum
The wealth tax battle exposes contradictions in California's economic model. Rising inequality concerns clash with tax flight risks. Newsom personifies the dilemma - balancing inequality reduction (a key Democratic issue) with maintaining financial stability. The state must reconcile its progressive taxation appetite with its reliance on wealthy residents who contribute disproportionately to its revenues.
Original article: Fortune — Kaliforniya'nın milyarder vergisine karşı kampanyanın arkasındaki isim