Berkeley scholars and tech moguls clash over California's billionaire tax initiative

California's Proposition 40, a ballot initiative to levy a wealth tax on the ultra-rich, was authored by a team of UC Berkeley scholars—economists Emmanuel Saez, Brian Galle, David Gamage and Darien Shanske—who argue the tax could fund Medicaid and other state programs. The proposal has drawn fierce opposition from former Google chief Eric Schmidt, who, together with Larry Page and Sergey Brin, has poured $85 million into campaigns to block it.

Both camps share a Berkeley pedigree; Saez teaches at the university and Schmidt earned graduate degrees there, underscoring the institution's dual legacy of spawning tech billionaires and progressive economists. Student groups at Berkeley, identified as the most supportive demographic, have organized debates, including a recent showdown between Saez and Reagan-era economist Arthur Laffer. Polls by the Institute of Government Studies show young voters are the most likely to back the tax, making the campus electorate pivotal. The contest reflects California's broader tension between Silicon Valley wealth and its tradition of progressive reform.