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4d ago

California Democrats Move to Back One-Time Billionaire Wealth Tax

The party’s action could boost the measure’s standing with voters even as top state leaders and some unions oppose it.

A booth at the California Democratic Party convention at Moscone Center in San Francisco promotes a tax on billionaires in February.  
Rusty Hicks, California Democratic Party chair, said the party takes “a deliberative approach to our endorsement process that puts our values first.”
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Overview

  • The party advanced support for Proposition 40 on Sunday when its resolutions committee recommended backing and the executive board voted to endorse the one-time tax, though the endorsement must still clear a 60% delegate vote to become official.
  • Proposition 40 would impose a 5% one-time tax on worldwide net worth above $1 billion for California residents and some trusts, with campaign backers estimating roughly $100 billion to fund health care, education, and food assistance.
  • Key state officials including Governor Gavin Newsom and Attorney General Xavier Becerra oppose the measure and have promoted rival ballot options, and wealthy donors and tech founders have begun funding campaigns against it.
  • Organized labor is split: SEIU United Healthcare Workers West, AFSCME California, Teamsters California and progressive figures back the tax, while other unions such as the California Teachers Association and several public-safety groups oppose it or remain neutral.
  • Analysts and opponents warn the measure faces major legal, enforcement and economic hurdles — including complex asset valuation, possible wealthy relocations and court challenges — that could cut collections and change how much the state ultimately receives if voters approve it.