RESOLVING THE LEDGER
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Eric Schmidt and Sergey Brin helped build Google into one of the world’s most valuable technology companies. Now, the former Google chief executive and the company’s co-founder find themselves on the same side of a California political fight—but a new report finds they are increasingly at odds over how to use their combined contributions. The disagreement centers on the ultra-rich coalition that has spent more than $100 million trying to bring down Proposition 40.
The New York Post reported Sunday that Schmidt has grown frustrated with the anti-tax coalition led in large part by Brin after the group failed to prevent California Democrats from endorsing the wealth-tax measure. The proposition, backed by SEIU United Healthcare Workers West, has notable Democratic Party leaders Bernie Sanders and Ro Khanna to champion it. To add insult to injury, Propositions 41 and 42 were also shot down by the party—the party opposed the billionaire-backed counter-measures, though both still go before voters in November. The party narrowly passed the endorsement threshold at 61.7%.
According to an advisor to Schmidt, the former Google CEO was not “irate” about the endorsement outcome. Conversely, the advisor told Fortune that Schmidt’s “only current involvement in politics is his contributions to defeating the billionaires tax”—meaning the divergence stemmed from his contributions also being used to oppose other measures that had created the split between the former Google partners.
Schmidt and Brin have both contributed millions to the political organization Building a Better California to oppose Proposition 40. But according to the advisor, the millions in funding are also going towards other areas, such as Proposition 45—an environmental policy —instead of solely focusing on barring the billionaire tax.
The Post suggests Schmidt’s internal dispute also stems from the coalition’s political effectiveness. Despite millions in opposition funding, California Democrats endorsed the tax and killed opposing propositions. That outcome contributed to Schmidt’s frustration with the campaign and its leadership, the report says.
Prop. 41 and 42 are two proposed ballot measures backed by Schmidt and Brin through Building a Better California. Proposition 41 would require state audits of programs funded by new special taxes, making it harder for the state to use funds raised by the billionaire tax. Proposition 42 would outlaw retroactive taxation, directly countering Proposition 40 and killing the wealth tax.
Billionaires fighting back against the tax
Schmidt and Brin are both major financial backers of the effort opposing the tax, with millions of dollars spent through Building a Better California. Brin has supplied the majority of the money behind the political organization he helped establish, contributing over $100 million. Schmidt, in turn, has contributed over $3 million. Other financial contributors opposing the proposal through the political organization include venture capitalist John Doerr, who contributed $7.5 million; executive chair of blockchain company Ripple, Chris Larsen, who contributed $10 million; and Stripe CEO Patrick Collison, who contributed $7 million.
The money is being spent against Proposition 40, California’s proposed billionaire wealth tax—imposing a one-time 5% tax on the net worth of California residents whose wealth exceeds $1 billion on Jan. 1, 2026. The state’s Legislative Analyst’s Office estimates the tax would affect a few hundred people and could produce tens of billions of dollars.
Other notable billionaires have also publicly opposed the proposition. Business mogul Mark Cuban recently entered a seven-part grudge match on X with California congressman Ro Khanna over the measure’s potential tax implications. Anduril Industries co-founder Palmer Luckey has also feuded with Khanna on X, saying the proposal was “extraordinarily frustrating politician-speak that nobody in the industry is dumb enough to fall for.”
Schmidt’s own financial interest in the issue is substantial. He was the CEO of Google from 2001 to 2011, and later served as Google’s executive chairman. He built his fortune largely through the technology industry, and Bloomberg estimates his wealth at $58.1 billion—making him one of the people who could be affected by Proposition 40.
Schmidt did not immediately respond to a request for comment.
This story was originally featured on Fortune.com
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