Former Google CEO Eric Schmidt Criticizes Anti-Billionaire Tax Movement

In the heart of a high-stakes political battlefield, tensions are escalating among Silicon Valley’s elite as Sergey Brin’s ambitious $100 million strategy to quash California’s proposed billionaire tax faces internal discord. Among the disenchanted voices is former Google CEO Eric Schmidt, who reportedly believes the effort has strayed off course, according to insights unveiled by the California Post.

Schmidt, who contributed $3 million to Brin’s initiative, familiarly known as Building a Better California, is said to be particularly incensed following the endorsement of the wealth tax by the state Democratic Party, which also dealt a blow to two countermeasures heavily funded by the coalition.

“Eric has every reason to be upset,” one insider with close ties to the situation confided in The Post.

The frustrations don’t stop there. A growing chorus of donors and advisors, having invested substantial amounts including a staggering $10 million from venture capitalist John Doerr and $7.5 million from Michael Moritz, are increasingly concerned. They argue that the organization’s ambitious pivot to support six diverse state ballot initiatives signifies a detour from its primary agenda to block the potentially damaging billionaire tax.

Initially, Building a Better California was laser-focused on defeating a tax measure perceived to pose a severe economic threat by chasing wealth out of the Golden State. However, apprehension arises that its latest ventures into areas like environmental legislation might compromise the overarching objective.

“Once you do that, you’re in a place where you may not be as effective,” one adviser to a Building a Better California donor told The Post, warning about “splintering” the mission.

Schmidt’s frustration only intensified after the bruising defeat two weeks ago at the California Democratic Party’s executive board meeting in San Diego.

The party not only voted to endorse Proposition 40 — the union-backed measure that would impose a one-time 5% tax on the wealth of Californians worth more than $1 billion — but also opposed Propositions 41 and 42, two measures backed by the Brin-funded operation as counterweights to the tax. 

Courtni Pugh, a partner at Hilltop Public Solutions and former director for the Service Employees International Union, had been tasked with lobbying Democrats to remain neutral on the billionaire tax while also whipping support for Props. 41 and 42, according to sources.

Instead, the billionaire coalition walked away 0-for-3, as the billionaire tax narrowly cleared the 60% threshold required for the party endorsement.

Hilltop, which is also working on the gubernatorial campaign of Democratic frontrunner Xavier Becerra, has received $75,000 from the pro-Prop. 42 committee. Becerra and Gov. Gavin Newsom, who also has worked closely with Hilltop on ballot measures, both oppose the billionaire tax.

Pugh did not respond to requests for comment.

Building a Better California raised $118 million through June, with Brin accounting for $82 million of it at the time. He has since thrown down another $20 million to bring his pot commitment to $102 million.

On July 24, the $20 million was split evenly between committees for Props. 41 and 42, giving them a lifeline after both ballot measure committees exhausted nearly $50 million apiece to collect petition signatures and qualify for the November ballot.

The group’s widening ambitions, however, are creating some strange bedfellows — and even putting its donors in uncomfortable positions.

Building a Better California has contributed $10 million to Proposition 45, which would significantly streamline environmental reviews under California’s landmark CEQA law for housing, transportation, water, energy and other projects.

The measure has been pitched by supporters as a way to lower housing and infrastructure costs by cutting red tape.

But Schmidt’s wife, environmental philanthropist Wendy Schmidt, is helping lead the campaign against Prop. 45 with actress Jane Fonda, believing it would gut environmental safeguards.

Along with past and future spending expected on Props. 40, 41, 42 and 45, Building a Better California has sent $6 million to Prop. 37, $1 million to Prop. 1 and millions more to another proposed constitutional tax-and-spending measure.

Other billionaire tax opponents are growing concerned by the group’s tactics.

“This is about not only what are you against,” the source said, “but what are you for?”

Despite some internal disagreement on priorities, more money is expected to flow toward the state propositions in the coming days and weeks.

The New York Times reported that Brin’s group has reserved nearly $87 million of advertising time across the state to air TV commercials.

A source with knowledge of the situation told The Post that the money is being allocated now to save on ad buys before they become more expensive closer to November’s election.

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