California Democrats Endorse Billionaire Wealth Tax, Defying Party Centrist Leaders

During a recent executive board session, California Democrats voted to endorse Proposition 40, a one-time tax on billionaire fortunes, achieving a slim 61.7 percent majority after a second ballot and strong advocacy from Rep. Maxine Waters. The endorsement counters the stance of top state Democrats, including Governor Gavin Newsom and his likely successor Xavier Becerra, who have warned that the tax could drive wealthy residents out of the state.

Billionaire interests have mobilized nearly $120 million in opposition spending, launching an $87 million advertising blitz. Newsom has reframed his opposition as a disagreement over the method of taxing the ultra-rich, promoting a federal “minimum tax on billionaires” that targets income rather than wealth. Tax experts such as Gabriel Zucman and Brian Galle argue that the governor’s proposals would have minimal impact on billionaire fortunes and face constitutional hurdles. The episode highlights a growing rift between the party’s centrist leadership and its increasingly populist grassroots base.