California Gov. Gavin Newsom apparently felt sick — literally — after he found out that one of the most influential tech figures was quitting the state.
Back in December, at a treehouse party north of San Francisco, the co-founder of Google, Sergey Brin, confronted the Democratic governor, according to a recent report by Bloomberg.
Brin, one of the world’s wealthiest men, told Newsom he was leaving the state. He mentioned a proposed tax on billionaires in California, which would hit his $260 billion net worth hard.
Newsom was reportedly “cold and hungry” when Brin and his girlfriend spoke with him at the Christmas event held by crypto figure Chris Larsen.
That conversation has apparently been lingering on Newsom’s mind for months, Bloomberg reported, as he complained about a “lingering cold” he caught from the couple.
The governor declined comment to Bloomberg on the conversation.
Since then, the proposed tax has ignited battle cries from Silicon Valley’s wealthy. The 5% tax on billionaires, proposed by labor union SEIU-United Healthcare Workers West, would move funding to healthcare and education programs threatened by federal funding cuts, according to proponents.
The proposal has yet to qualify for the November ballot, but some individuals, especially Brin, have decided to take action.
The billionaire acted on his warning to Newsom, leaving the state and buying a lakeside mansion in Nevada.
He is also putting tens of millions of his own money to combatting the tax initiative. He committed at least $45 million to a group called Building A Better California, and has spent at least $58 million total this year.
Newsom actually opposes the proposed tax as well for potentially stifling innovation in exchange for a one-time fix to the state budget.
“This will be defeated — there’s no question in my mind,” Newsom told the New York Times. “I’ll do what I have to do to protect the state.”
The tax proposal has consumed a lot of oxygen in many of the state’s political races, particularly for progressive candidates.
Billionaire Tom Steyer, who is running for governor, has made it a point to campaign on supporting the tax, even adopting an informal slogan of “Tax me more.”
Another self-labeled progressive, Congressman Ro Khanna, has faced fierce backlash for supporting the proposal. Khanna, who is defending his seat, is being challenged by his wealthy Silicon Valley constituents in no small part due to the tax.
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