Tech billionaires raise over $333 million to fight a California wealth tax

Some of the richest people in tech have raised more than $333 million to try to defeat a proposed wealth tax in California. According to a New York Times report, the tax would take 5% of the wealth of the state's very richest residents. About two dozen billionaires or their advisers are planning the fight together.

What is happening

A wealth tax is different from an income tax. It does not tax what a person earns in a year. It taxes the total value of what a person owns. The proposal in California would take 5% of the wealth of the very richest Californians.

Every Tuesday for the last few months, about two dozen of the world's richest people or their advisers have joined a conference call to plan their campaign against it.

Patrick Collison's role

One name stands out in the report. Patrick Collison, the co-founder of the payments company Stripe, gave $33 million. The Times describes this as his most serious involvement in a political campaign so far.

Why it matters

California is home to many of the biggest names in tech. If the tax passes or fails, other states may take notice. The result could influence how states think about taxing the rich. It could also affect where founders choose to start and grow their companies.

What is not known yet

• The full article was not available, so many details are missing.
• The exact rules of the tax and who would owe it are not spelled out here.
• It is not clear when voters or lawmakers will decide.
• The split of the $333 million among donors is not given beyond Collison's $33 million.