{"id":6337,"date":"2026-08-04T18:38:55","date_gmt":"2026-08-04T18:38:55","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=6337"},"modified":"2026-08-04T18:38:55","modified_gmt":"2026-08-04T18:38:55","slug":"california-democratic-party-breaks-with-newsom-to-endorse-billionaire-tax","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=6337","title":{"rendered":"California Democratic Party breaks with Newsom to endorse billionaire tax"},"content":{"rendered":"
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The California Democratic Party endorsed a proposed tax on billionaire wealth on Sunday, breaking with Gov. Gavin Newsom and several powerful labor unions and deepening a fight over whether the measure would protect healthcare or drive tax revenue out of the state.<\/p>\n

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Proposition 40, which is one of 14 statewide initiatives on the ballot in November, would implement a one-time 5% tax on California\u2019s roughly 200 billionaires. Supporters estimate it would raise roughly $100 billion over several years, though the nonpartisan Legislative Analyst\u2019s Office projects \u201ctens of billions.\u201d Ninety percent would go toward healthcare, with the remainder funding education, food assistance and administration.<\/p>\n

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The vote to endorse the measure by party delegates from across the state and members of the executive board initially failed as backers were unable to cobble together enough support to cross the 60% threshold needed. A subsequent vote, however, succeeded after several voters changed their stance.<\/p>\n

In a state where Democratic voters outnumber Republicans nearly 2-1, the party\u2019s endorsement is influential to many of the state\u2019s voters and will prominently appear on many campaigns\u2019 websites and mailers.<\/p>\n

\u201cIt reflects the broader, deeper divide within Democratic Party politics nationally about the strength of Democratic Socialists of America, the strength of the left, yet also illustrates the deep divide within the labor movement that affects the Democratic Party,\u201d Sonoma State Political Science Professor David McCuan said about the endorsement.<\/p>\n

Prop. 40 is being backed by SEIU United Healthcare Workers West, a union representing 120,000 workers across the state, and Teamsters California, along with politicians like Rep. Ro Khanna, a Santa Clara Democrat.<\/p>\n

Dave Regan, president of SEIU United Healthcare Workers West, said in a statement to Politico that the \u201cendorsement puts to rest the idea that California Democrats are not united by the billionaire tax \u2014 they are.\u201d<\/p>\n

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But unions that have come out against the tax \u2014 like the California Teachers Association, the California State Council of Laborers and United Domestic Workers \u2014 and Newsom have raised concerns that the tax would have long-term effects on the state\u2019s economy and tax base. They also argue that the funding is one-time and wouldn\u2019t create a sustainable pipeline for some of California\u2019s long-term needs.<\/p>\n

Newsom, who is weighing a 2028 presidential bid, recently called for a national tax on billionaires, arguing that\u00a0it is the better approach because \u201cwealth is movable, and it shops for the state with the lowest taxes.\u201d A spokesperson for Newsom did not respond to a request for comment.<\/p>\n

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The party\u2019s endorsement of the wealth tax, McCuan said, let\u2019s the governor continue his \u201ctwo-step kind of dance\u201d as he portrays himself as \u201csomeone who wants to be on the cutting edge of issues, but also does not want to be a knee-jerk California liberal and painted as such as he looks to run for the White House.\u201d<\/p>\n

Golden Promise, one of the groups opposing the wealth tax, declined to comment on the California Democratic Party\u2019s endorsement of the measure. Spokesperson Roger Salazar previously called it a \u201cconvoluted nightmare of a measure\u201d and said it was the \u201cwrong approach for California\u2019s small businesses and working families.\u201d<\/p>\n

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The party also decided this weekend whether to support or oppose the 13 other measures on the November ballot.<\/p>\n

Propositions 41 and 42 \u2014 the two measures aimed at counteracting the billionaires tax \u2014 garnered an opposition position from the party. Either measure could nullify the wealth tax if it passes with more votes.<\/p>\n

Proposition 45, which would make major changes to the California Environmental Quality Act, also received an opposition position vote from the party. Sponsored by the California Chamber of Commerce, the measure would set a 365-day limit on environmental reviews for a wide range of projects, including new reservoirs, housing, public transit, solar farms and battery storage facilities. A recent poll from the Public Policy Institute of California found that 73% of likely voters supported the measure.<\/p>\n

California Democrats also have opted to oppose Proposition 39, a measure requiring voter ID, and Proposition 43, which would make it harder to pass local taxes put on the ballot through the signature gathering process.<\/p>\n

Sunday\u2019s endorsement vote also had the party weighing in on the state insurance commissioner race between Sen. Ben Allen and former San Francisco Supervisor Jane Kim. Allen narrowly earned the support of the party with 60.68% of the vote.<\/p>\n

The consequential race, which sees two Democrats going against each other, will decide who will succeed Ricardo Lara to lead the California Department of Insurance, an agency grappling with the state\u2019s home insurance crisis that approves rate hikes and investigates complaints against insurers.<\/p>\n

\u201cEvery endorsement we make is earned, not given,\u201d California Democratic Party Chair Rusty Hicks said about the slate of endorsements over the weekend. \u201cCalifornia Democrats take a deliberative approach to our endorsement process that puts our values first and ensures our members have a meaningful voice in shaping the future of our state.\u201d<\/p>\n

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Several powerful labor unions and Gov. Gavin Newsom have come out against the tax.<\/p>\n","protected":false},"author":1,"featured_media":6336,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nCalifornia Democratic Party breaks with Newsom to endorse billionaire tax - Next City Digest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nextcitydigest.com\/?p=6337\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California Democratic Party breaks with Newsom to endorse billionaire tax - Next City Digest\" \/>\n<meta property=\"og:description\" content=\"Several powerful labor unions and Gov. 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