Sergey Brin and Aaron Kirman weaponize fear to kill Prop 40
By Maya Ellison · Reporting from Detroit ·
The battle over Proposition 40 is not a debate about fiscal policy. It is a fight between the survival of the poor and the vanity of the ultra-rich. Prop 40 is a one-time 5% tax on certain assets over $1 billion. It targets residents as of Jan. 1, 2026. The goal is simple: fund healthcare for people who cannot afford it. But the billionaires are terrified. They are using their influence to shift the burden of budget cuts. They want the sick and the working class to pay, rather than their own hoarded fortunes.
The blackmail of the exit
Aaron Kirman, the CEO of Christie’s International Real Estate Southern California, is leading the charge of fear. Kirman has more than $26 billion in sales. Now, he warns that the tax is "disastrous" for the real estate market. He claims it will trigger a "mass exodus" of the wealthy.
This is the same mechanism as the French wealth tax repeal (2010s). The ultra-wealthy use the threat of capital flight to blackmail governments. They force them to abandon taxes designed to fund essential public services for the vulnerable.
Kirman argues that billionaires are "job creators" and that their presence supports restaurants and nightlife. He claims the state needs these "top-down" interests to survive. This is a lie. The real interest here is the protection of elite profit margins.
The price of a billionaire's silence
Billionaires are spending a staggering amount of money to kill this tax. CNN reports that Google co-founder Sergey Brin has funneled over $100 million to defeat Proposition 40. Brin is a multibillionaire.
To Brin, over $100 million is a drop in the bucket. To the state, the stakes are existential. Proponents warn of a $20 billion annual shortfall from federal cuts and the One Big Beautiful Bill Act. Without the wealth tax revenue, politicians will balance budgets on the backs of the poor. The reality is a calculated effort to shield a fortune that could fund healthcare for millions.
The luxury lie
Kirman points to Los Angeles’s Measure ULA as a "catastrophic" failure. That "mansion tax" adds a levy on multi-million dollar transfers. Kirman claims the tax backfired. He says transactional volume is down 60%.
But Kirman's concern for "community" is a facade. He blames taxes for the housing crisis. Yet, he has publicly argued that Beverly Hills lacks enough land for affordable housing. He protects the exclusivity of the hills while claiming the state is "retreating" because of bad policy.
This is the same pattern we saw during the Great Recession (2008-2012). The financial elite protected their assets while the public bore the burden of austerity. Now, the elite are again demanding that the state "appreciate" their business by refusing to tax it.
The polls show a state divided. A Citrin Center-POLITICO poll found 45% of likely voters support Prop 40, with the rest opposed or undecided. An NBC News poll also finds the wealth tax proposal just shy of majority support.
The opposition is not just billionaires. Governor Gavin Newsom has publicly opposed the measure while pitching a national alternative.
The historical turning point
Opponents and supporters have spent more than $200 million on the measure. Still, the opposition is deploying massive financial firepower. This is not a fair fight. It is a corporate blitz designed to drown out the needs of the vulnerable.
If the tax fails, the result is predictable. The state will slash Medi-Cal funding and public assistance programs. This will shift the fiscal burden onto low-income patients and working families.
The billionaires will not leave. The "mass exodus" is a ghost story to scare voters. The only thing that will actually exit is the funding for the poor.
Justice requires that those who have benefited most from California's economy pay their fair share to sustain it. If an advertising onslaught defeats Prop 40, the vulnerable will pay the cost in human lives. The billionaires will keep their yachts, and the working class will lose their doctors. That is the only "disaster" that actually matters.
Sources
- Fox Business: Top real estate mogul issues stark warning as California buyers say 'enough is enough' on taxes
- NBC News: Live updates: Poll finds California wealth tax proposal just shy of majority support
- CNN: A Google co-founder is spending $100 million to defeat California’s wealth tax. It could become one of his best investments