California Democratic Party Champions Proposition 40: Taxing Billionaires to Fund Essential Services
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Defying establishment opposition, the California Democratic Party’s executive board has courageously endorsed Proposition 40—a groundbreaking one-time 5% tax on billionaire assets—to invest in Medicaid and food assistance. This move, backed by progressive leaders, signals a bold stand against wealth hoarding and for social justice.
On Sunday, the California Democratic Party’s executive board took a historic step by endorsing Proposition 40, a measure that would finally hold California’s billionaires accountable through a one-time 5% tax on their vast, accumulated assets. The estimated $100 billion raised over five years would be directed to Medicaid and food-assistance programs, providing vital support to the state’s most vulnerable residents.
This progressive initiative has garnered enthusiastic support from national champions of economic justice, including Senator Bernie Sanders and Representative Ro Khanna. Despite resistance from establishment figures like Governor Gavin Newsom, candidate Xavier Becerra, and some labor unions—who repeat tired arguments about the wealthy fleeing the state and budgetary strain—the party’s grassroots have made their voices heard.
"This endorsement puts to rest the idea that California Democrats are not united by the billionaire tax — they are," declared Dave Regan, president of SEIU-United Healthcare Workers West, a key force behind the ballot initiative.
Regan pointed to overwhelming support: an internal poll shows over 80% of registered Democrats back the tax, while a Public Policy Institute of California poll found 54% of likely voters and 76% of Democrats in favor. These numbers reflect a growing demand for the ultra-wealthy to pay their fair share.
Predictably, opponents—including the California Teachers Association and tech billionaires—warn of financial instability. The No on Prop. 40 campaign, echoing corporate talking points, labeled the tax as “bad for our budget, bad for our economy, and bad for our future.”
In a further show of progressive resolve, the party rejected two measures designed to weaken the billionaire tax, as well as a voter-ID proposal and a bill to undermine the California Environmental Quality Act. The board also endorsed $36.25 billion in housing bonds and an $8.4 billion immunology research bond, reaffirming its commitment to public investment.
"Every endorsement we make is earned, not given," said California Democratic Party Chair Rusty Hicks. "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."