California Democrats endorse Proposition 40 billionaire tax

The California Democratic Party has endorsed a controversial ballot measure to impose a one-time 5% tax on the state's billionaires, a move that puts the party's grassroots activists at odds with its highest-profile leaders, Governor Gavin Newsom and gubernatorial nominee Xavier Becerra. The party's executive board voted on Sunday, August 2, to support Proposition 40, which would levy the tax on roughly 200 California residents who were billionaires as of January 1, 2026.

The endorsement, which narrowly cleared a required 60% threshold after two delegates switched their votes, gives the measure significant institutional backing just three months before voters decide its fate in the November election. Proponents, led by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW), argue the tax is an emergency measure needed to offset deep federal healthcare funding cuts. They estimate it could generate approximately $100 billion, with 90% of the revenue directed to the state's healthcare system and the remaining 10% funding public education and food assistance programs.

The vote exposed deep divisions within the state's dominant political party. Governor...