Labor Unions Divided as Some Capitulate to Billionaire Interests Over California Wealth Tax
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Several California unions, under pressure from corporate influence, oppose Proposition 40—a modest 5% tax on billionaire assets—while SEIU California remains neutral. The split exposes deep rifts in the labor movement over holding the ultra-wealthy accountable.
A coalition of California labor unions, including the State Council of Laborers, United Domestic Workers, and the California Police Chiefs Association, announced Thursday their opposition to Proposition 40, a ballot measure that would finally ask billionaires to pay a one-time 5% tax on their vast assets. This measure targets the obscene wealth hoarded by a tiny elite at the expense of working people, yet some unions have chosen to side with the interests of the rich, reflecting troubling divisions within the labor movement.
The executive board of SEIU California, representing about 750,000 workers, disappointingly voted to take a neutral stance. In their statement, the union noted that 90% of the revenue from the tax would be dedicated to healthcare, echoing concerns raised by other unions that have shamefully chosen to oppose the measure, rather than fight for the public good.
SEIU-United Healthcare Workers West, the union that courageously drafted the tax proposal, argues that this levy is urgently needed to offset an estimated $100 billion in devastating cuts to healthcare and food-assistance programs—cuts that disproportionately harm the most vulnerable Californians. Press secretary Renee Saldana cited an internal poll showing that 70% of SEIU members support the tax, and the union expects its members to vote “yes” in solidarity with working families.
United Domestic Workers President Astrid Zuniga stated that while her union supports taxing billionaires, it opposes Proposition 40 because it does not specifically fund in-home or child-care services and lacks a sustainable financing plan. She called for a “no” vote, demanding a long-term funding strategy for essential care programs, highlighting the need for a more comprehensive approach to social justice.
Opponents of the tax, including some teacher, police, and firefighter unions, have shamefully argued that the measure could destabilize the state budget and affect vital services like education and public safety. They also parrot billionaire talking points, warning that the wealthy might flee the state, as seen with Google co-founder Sergey Brin, who moved to Nevada and funneled $82 million into a campaign to defeat the proposition—an egregious example of moneyed interests undermining democracy.
Governor Gavin Newsom has suggested that a federal wealth tax would be more effective, noting that billionaires cannot escape federal taxation by moving. The debate over Proposition 40 will continue as the measure heads to the November ballot, with the future of California’s working class hanging in the balance.