Special Investigations

Press Freedom Defense Fund

Scott Wiener Opposes a California Billionaire Tax. So Do His Tech CEO Backers.

Crypto executive Chris Larsen has spent millions fighting billionaire tax measures, and he’s the largest individual donor to a PAC backing Wiener.

The leading progressive candidate to replace longtime Democratic leader Nancy Pelosi in Congress is opposing a pair of wealth taxes on the ballot in his state and district: a one-time statewide tax on California billionaires and a local San Francisco tax on the city’s wealthiest businesses and corporations. 

California state Sen. Scott Wiener’s opposition might seem uncharacteristic for someone running a progressive campaign, but it’s consistent with the priorities of two top donors to a super PAC backing his candidacy.

Crypto mogul Chris Larsen and venture capitalist Garry Tan — a pair of wealthy Bay Area tech executives funding a pro-Wiener super PAC called Abundant Future — have been outspoken advocates of stopping the taxes, both of which aim to help fill funding gaps in healthcare and social services after the Trump administration’s recent cuts to Medicaid. Larsen has poured millions of dollars into the fight.

The statewide tax, known as the Billionaire Tax Act, would levy a one-time 5 percent tax on the state’s billionaires’ wealth and assets. The local San Francisco proposition, colloquially known as the Overpaid CEO tax, would tax companies whose CEO makes 100 times more than their median worker, which mostly applies to companies with billionaire CEOs. Both will likely be on the ballot in November, as Wiener also hopes to be.

Larsen, the billionaire co-founder and executive chairman of the blockchain service Ripple Labs and now a mainstay in Bay Area political funding, has donated $100,000 to the PAC backing Wiener — the most of any individual donor — and $700,000 opposing the Overpaid CEO tax, according to federal and San Francisco city records. He’s spent far more fighting the statewide billionaires’ tax, sinking $5 million of his own wealth and another $5 million from Ripple into the Golden State Promise PAC, an anti-tax PAC he founded, per state records. Larsen gave an additional $2.5 million to a separate anti-billionaire tax group, Building a Better California, founded by Google co-founder Sergey Brin and former Google CEO Eric Schmidt. (Brin has reportedly already left the state to avoid the tax.)

Tan, the CEO of startup incubator Y Combinator, has less money to throw around, but he’s made vocal opposition to the tax measures a key part of his brand. He frequently invokes the specter of billionaires and startups fleeing the state and spreads claims that the statewide tax would mean Google’s founders would owe 50 percent of their stocks, which the tax’s backers have dismissed as false. He’s contributed $25,000 to Abundant Future.

She Opposed His Plan for a Blockchain City. Now He’s Bankrolling Her Primary Opponent.

Larsen and Tan likely see their support as “political investments that they expect a return on,” said Jeremy Mack, executive director of Phoenix Project, which tracks corporate spending in San Francisco politics. Wiener owes much of his political strength to the donors who have boosted his housing causes during his state Senate career, including Larsen and Tan. With those backers now animated against the wealth taxes, Mack said that supporting them would be “political suicide” for Wiener.

But Wiener’s opposition to the taxes positions him against the political currents now driving the Democratic Party’s progressive wing. California’s major labor unions, a supermajority of San Francisco’s board of supervisors, and national progressive leaders like Sen. Bernie Sanders, I-Vt., all support the pair of taxes. Even Pelosi, Wiener’s would-be predecessor and a known moderate, is in favor of the local San Francisco tax. SEIU California, one of the state’s largest labor unions, withdrew its endorsement of Wiener in early April over his opposition to the tax measures.

Saikat Chakrabarti’s Plan for the Political Revolution

Both of Wiener’s opponents in the three-way June 2 primary — progressive member of San Francisco’s board of supervisors Connie Chan and Justice Democrats co-founder Saikat Chakrabarti — are in favor of the taxes. Most California voters support the........

© The Intercept