California Democratic Party backs billionaire wealth tax despite opposition from Gov. Newsom and gubernatorial candidate Becerra

Delegates at the California Democratic Party convention in San Diego voted on Sunday to endorse Proposition 40, a ballot measure that would levy a one-time 5% tax on roughly 200 of the state’s billionaires. The endorsement passed on a second vote, with 145 of 235 delegates supporting the measure, giving it about 61.7% of the vote after an initial tally fell just short of the required supermajority.

Party chair Rusty Hicks said the endorsement was earned and reflected the party’s values, emphasizing a deliberative process that gives members a voice in shaping state policy.

The decision contrasts with the positions of Governor Gavin Newsom and Democratic gubernatorial nominee Xavier Becerra, both of whom have publicly opposed the wealth tax. Newsom has argued that a state-level tax could drive wealthy residents to relocate, preferring a federal approach, while Becerra reiterated his opposition while supporting a separate measure to extend an income-tax surcharge on high earners for education funding.

Supporters of Proposition 40, including Senator Bernie Sanders, Representative Ro Khanna, Teamsters California, AFSCME California and the California Young Democrats, contend the tax could raise about $100 billion, primarily to offset reductions in federal health-care funding. Opponents, including business groups and a political action committee funded by billionaire donors such as Google co-founder Sergey Brin, warn the tax could deter investment and prompt affluent Californians to leave the state.

During the convention, SEIU United Healthcare Workers West president Dave Regan said the endorsement demonstrated strong Democratic voter support for the tax, citing polling that shows more than 80% of registered Democrats favor the proposal. Initiative proponent Suzanne Jimenez, also a SEIU official, expressed commitment to working with the party to pass the measure and protect health-care access.

Proposition 40, formally the California 2026 Billionaire Tax Act, is slated for the November 3 ballot. A spokesperson for Becerra confirmed the candidate’s continued opposition, and Newsom’s office did not respond to a request for comment.