Friends,
Google co-founder Sergey Brin, one of the three or four wealthiest people in the world, with a net worth hovering around $260 billion to $277 billion, is devoting some of his wealth to fighting California’s wealth tax on billionaires.
So far, he’s spent $57 million trying to defeat the measure.
Brin’s actions — along with Elon Musk’s $250 million “investment” in getting Trump reelected in 2024 — should be Exhibits A and B in why America needs a wealth tax.
First, let’s stipulate that there is nothing inherently wrong about being a billionaire, a multibillionaire, or even, as Musk is likely to become, a trillionaire.
Wealth isn’t a “zero-sum” game in which these vast accumulations at the top depend on the rest of us losing an equal amount. In fact, the super-wealthy may help the rest of us do somewhat better than we were doing before.
Even though the wealth of the top 0.1 percent has soared in recent years, the bottom 50 percent are doing somewhat better than before. (See chart below.)
But wait.
The problem is that political power is a zero-sum game. The more political power is concentrated in a few hands, the less political power in everyone else’s hands.
It’s almost impossible to separate wealth from power, because the wealthy turn their fortunes into campaign contributions to politicians who will change laws to their liking and stop laws they’d detest — such as higher taxes on the super-wealthy. The wealthy also finance public relations campaigns and think-tanks to persuade the public of the wisdom of their positions.
Billionaire spending on presidential elections has soared even faster than billionaire wealth. And if you believe they’re donating because they want people with great integrity and excellent character to be elected president, consider that most billionaire political spending in 2024 went to Trump.
They’re donating because they want to protect and enlarge their fortunes and don’t want politicians elected who support higher taxes on them.
Nor do they want politicians elected who support stricter anti-monopoly legislation or who would make it easier to form labor unions or stop climate change (all of which might reduce the profits of, say, Google).
Take Sergey Brin and his $57 million against California’s tax on billionaires — which, not incidentally, was proposed because California must now pay more for Medicaid for lower-income Californians, because Trump and his Republican lackeys enacted a giant federal tax cut whose benefits have gone mostly to the wealthy.
Brin has become a major Republican donor. Last May, he donated nearly half a million dollars to the Republican National Committee.
Why? Because the Republican Party is more dedicated to protecting and enlarging the wealth of the super-wealthy than is the Democratic Party.
By spending his fortune trying to stop California from taxing billionaires, Brin is illustrating why we need to tax billionaires. He’s making the argument for a billionaire wealth tax more clearly and articulately than anyone else possibly could.
Thank you, Serge.