California Democratic Party backs billionaire tax despite internal opposition

Campaign California Democratic Party backs billionaire tax despite internal opposition Comments: by Ryan Mancini - 08/02/26 11:21 PM ET Comments: Link copied by Ryan Mancini - 08/02/26 11:21 PM ET Comments: Link copied

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The California Democratic (CADEM) Party on Sunday announced that it backs a ballot measure to charge the state’s 200 billionaires with a one-time, five-percent tax on their net worth, a measure that has faced opposition from California Democrats, including the state’s governor.

The state party’s executive board narrowly voted to back Proposition 40, known as the Billionaire Tax Act, Politico reported. Three people familiar with the matter said Rep. Maxine Waters (D-Calif.) attended the vote held in San Diego, helping the yes votes reach the finish line.

“Every endorsement we make is earned, not given,” CADEM Chair Rusty Hicks said in a statement. “California 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.”

The ballot measure has received support from some progressives, including Rep. Ro Khanna (D-Calif.) and Sen. Bernie Sanders (I-Vt.), who championed the bill in Los Angeles earlier this year. The Service Employees International Union (SEIU) Healthcare Workers West, one of the measure’s most prominent backers, praised the party endorsement.

“This endorsement puts to rest the idea that California democrats are not united by the billionaire tax — they are,” said Dave Regan, president of SEIU United Healthcare Workers West. “Polling shows that more than 80 percent of registered Democrats support this critical solution to our healthcare crisis and now the Democratic Party of California has officially embraced that strong support through this endorsement.”

Progressives like Sanders have argued that the bill will collect taxes from the Golden State’s billionaires and pivot that money toward healthcare programs meant for middle-class and low-income Californians.

California Gov. Gavin Newsom (D), who previously told The New York Times that there was “no question” that the measure “will be defeated,” has since called for a national billionaire tax and an “economic reset in America.” He argued on Substack in June that the measure was flawed in having its revenue spent toward offsetting the impact of federal spending cuts rather than funding schools and housing.

“Wealth is movable, and it shops for the state with the lowest taxes,” he wrote. “The fight belongs at the federal level, where this broken system was created in the first place.”

In March, half of Californians said they backed the ballot measure and would vote for it in November, according to the UC Berkeley Citrin Center for Public Opinion Research-POLITICO poll.