Crypto PAC launches political ad war against billionaire tax initiative

Californians watching the gubernatorial debate Tuesday night won’t just be deciding who to support for governor — but also whether they’ll vote against a tax on billionaires.

A political action committee backed by crypto billionaire Chris Larsen is debuting an ad during tonight’s debate attacking the proposed tax, Politico reported.

The Golden State Promise PAC said in an announcement that it will spend eight figures on the ad campaign, including digital ads and mailers. According to campaign finance records, Larsen has put $5 million of his money into the PAC, and so did his company Ripple, which facilitates crypto payments.

The voiceover ad highlights what it portrays as bipartisan unity against the tax from Gov. Gavin Newsom, Republicans, and Democrats. Newsom has publicly promised to fight the initiative.

“It will backfire and hurt you,” the ad claims. “Billionaires and businesses are already leaving, taking good-paying jobs with them.”

Already, many wealthy individuals have fled the state with the threat of the billionaire tax looming. The most prominent of them is Google co-founder Sergey Brin, who left for Nevada and is now pumping money to stop the tax.

The ad claims $25 billion in tax revenue would be lost, gutting funding for schools and firefighters.

“It’s reckless, and it hurts you,” the ad concluded.

The tax proposal has yet to formally get on the ballot in November, but supporters recently announced that they got enough signatures to qualify.

The tax — proposed by the Service Employees International Union–United Healthcare Workers West — would impose a one-time 5% levy on California residents with assets exceeding $1 billion. Supporters say the tax is needed to address healthcare funding gaps tied to cuts to Medicaid and other federal programs implemented last year.

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Progressive politicians have come out to support it in force, including US Sen. Bernie Sanders of Vermont and Silicon Valley Rep. Ro Khanna.

That has put them on a clash with Democrats like Newsom, who worry the tax will hurt the state’s economy in the long run when billionaires move away.

Larsen, whose net worth is estimated at $12.4 billion, has been a vocal opponent of the tax and other similar wealth tax efforts. It was at Larsen’s Christmas party that Brin reportedly confronted Newsom on the tax.

“We’ve got to start fighting on par with the unions when they propose these absolutely stupid propositions like this crazy CEO tax,” Larsen told the San Francisco Business Times.