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3h ago

California Democrats Narrowly Endorse Proposition 40 Wealth Tax

A formal party endorsement providing no funding or organizing support that signals a widening split between grassroots progressives and establishment Democrats.

People visit the Billionaire Tax Now booth at the 2026 California Democratic Party State Convention in San Francisco on Feb. 21, 2026.
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 California Democratic Party’s executive board voted narrowly to endorse Proposition 40 on Sunday, clearing the roughly 60% threshold after an initial vote fell short.
  • Proposition 40 would impose a one‑time 5% tax on net worth above $1 billion for California residents, a levy supporters say would apply to about 200 people and raise roughly $100 billion for health care and related programs.
  • Prominent Democrats including Gov. Gavin Newsom and Xavier Becerra oppose the measure while progressives and SEIU‑United Healthcare Workers West lead the campaign in favor, producing a clear split inside the party.
  • Opponents led by tech founders and business groups have already spent more than $100 million to defeat the measure and have backed competing ballot tactics designed to blunt its impact.
  • Legal questions over valuation and enforcement, the risk that wealthy residents could leave the state, and uncertainty about long‑term revenue durability are key factors to watch as the measure heads to the November 3, 2026 ballot.