Nobel Economists Back California Billionaire Tax as Ripple Chair Chris Larsen Funds Opposition

Six Nobel Prize‑winning economists have publicly supported California’s Proposition 40, a ballot initiative that would impose a one‑time 5% tax on the wealth of the state’s richest individuals. The measure, slated for the November 3 ballot, could generate roughly $100 billion in revenue.

Economic rationale from Nobel laureates

The economists – Daron Acemoglu, Abhijit Banerjee, Peter Diamond, Esther Duflo, Paul Krugman and Joseph Stiglitz – note that the wealth of California’s top 0.001% has risen from $700 billion a decade ago to $2.3 trillion today. They argue that a one‑time 5% levy on the roughly 250 billionaires would raise as much as a 5% income tax on all California taxpayers, providing funds to offset federal Medicaid cuts.

Opposition led by Ripple’s chairman

Chris Larsen, executive chair of Ripple Labs, has contributed more than $10 million to defeat Proposition 40. His spending includes $5 million to the “Golden State Promise” committee and a matching $5 million from Ripple Labs, as well as $10 million routed to the “Building a Better California” political action committee.

Other wealthy opponents

Venture capitalist John Doerr has donated $7.5 million to the anti‑tax effort, and Sergey Brin has shifted holdings out of California and spent $102 million against the tax. Larsen’s own net worth, estimated at $8.4 billion, would translate to a potential liability of about $420 million under the proposed levy.

Strategic counter‑measures

The “Building a Better California” PAC also backs two alternative initiatives, Proposition 41 and Proposition 42, which could neutralize the billionaire tax even if voters approve it.