Eric Schmidt has grown frustrated with the anti-tax coalition he and Google co-founder Sergey Brin are both bankrolling in the fight over the Schmidt Brin California billionaire tax battle, after disagreements emerged over how their combined contributions are being spent, according to a report by the New York Post.
Both men have poured money into Building a Better California, the political organisation opposing Proposition 40, a ballot measure that would impose a one-time 5% tax on the net worth of California residents whose wealth exceeded $1 billion on 1 January 2026. CalMatters reports the measure would affect an estimated 200 Californians.
The union sponsoring the measure, SEIU United Healthcare Workers West, projects it would raise roughly $100 billion over five years, according to CalMatters. California’s Legislative Analyst’s Office has estimated it could produce tens of billions of dollars, affecting a few hundred people.
Where the Schmidt Brin California billionaire tax money is going
Brin has contributed over $100 million to Building a Better California and was instrumental in establishing the organisation. Schmidt has contributed over $3 million.
An advisor to Schmidt told Fortune that his frustration stems not from the tax fight itself but from coalition funds flowing to causes beyond Proposition 40. The advisor said Schmidt’s money is also being directed towards other measures, including Proposition 45, an environmental policy, rather than concentrating solely on defeating the wealth tax.
The advisor said Schmidt was not “irate” about California Democrats endorsing Proposition 40, and stressed that his “only current involvement in politics is his contributions to defeating the billionaires tax.”
Schmidt did not immediately respond to a request for comment.
Coalition’s political setbacks fuel internal tension
The coalition has spent more than $100 million in opposition, yet California Democrats endorsed Proposition 40 at their party convention, clearing the 61.7% threshold needed to do so. Two counter-measures backed by Schmidt and Brin through the organisation, Propositions 41 and 42, were simultaneously rejected by the party, though both remain on the November ballot.
Proposition 41 would require state audits of programmes funded by new special taxes. Proposition 42 would outlaw retroactive taxation, directly countering the wealth tax.
The Post reports that the coalition’s perceived political ineffectiveness compounded Schmidt’s dissatisfaction with its leadership.
Proposition 40 has the backing of prominent Democratic figures including senators Bernie Sanders and congressman Ro Khanna.
Other major donors opposing the measure through Building a Better California include venture capitalist John Doerr, who contributed $7.5 million; Ripple executive chair Chris Larsen, who contributed $10 million; and Stripe chief executive Patrick Collison, who contributed $7 million.
Schmidt’s financial stake in the outcome is direct. He served as Google’s chief executive from 2001 to 2011 and later as executive chairman, building a fortune Bloomberg estimates at $58.1 billion, placing him among those who would face the levy if it passes.
Proposition 40 goes before California voters in November.
