California Democrats Push Punitive Billionaire Tax, Defying Newsom and Becerra’s Warnings
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The California Democratic Party has endorsed Proposition 40, a one-time 5% tax targeting the state’s most successful citizens, despite strong opposition from Governor Newsom and gubernatorial candidate Becerra, who warn the measure will drive investment and jobs out of California.
At their convention in San Diego, delegates of the California Democratic Party voted to endorse Proposition 40, a ballot measure that would slap a one-time 5% tax on approximately 200 of the state’s billionaires. The measure narrowly passed on a second vote, with 145 out of 235 delegates (about 61.7%) supporting it after the initial tally failed to reach the required supermajority. This move highlights the party’s increasing embrace of punitive taxation and class warfare rhetoric.
Party chair Rusty Hicks claimed the endorsement reflected party values, emphasizing a process that allowed members to push for radical changes in state policy, regardless of the economic consequences.
The endorsement puts the party at odds with Governor Gavin Newsom and Democratic gubernatorial nominee Xavier Becerra, both of whom have sensibly opposed the wealth tax. Newsom has warned that such a tax would drive successful individuals and their businesses out of California, advocating instead for a federal approach. Becerra, while supporting another tax hike on high earners for education, has reiterated his opposition to this extreme measure.
Supporters of Proposition 40—including far-left figures like Senator Bernie Sanders, Representative Ro Khanna, and powerful public employee unions such as Teamsters California, AFSCME California, and the California Young Democrats—claim the tax could generate $100 billion, supposedly to offset federal health-care cuts. However, opponents, including business groups and a political action committee funded by billionaire donors like Google co-founder Sergey Brin, warn the tax will deter investment, threaten jobs, and accelerate the exodus of wealth and opportunity from the state.
During the convention, Dave Regan, president of SEIU United Healthcare Workers West, touted the endorsement as proof of Democratic voter support, citing polls that claim over 80% of registered Democrats back the proposal. Suzanne Jimenez, a SEIU official and initiative proponent, vowed to work with the party to push the measure and expand government control over health care.
Proposition 40, officially the California 2026 Billionaire Tax Act, is set for the November 3 ballot. Becerra’s spokesperson confirmed his continued opposition, while Newsom’s office did not respond to requests for comment—perhaps wary of the economic fallout this reckless policy could unleash.