San Francisco Democrats Reject State Billionaire Wealth Tax, Highlight Party Rift

The San Francisco Democratic Party voted 17-4 to oppose Proposition 40, a one-time 5% levy on the net worth of California residents with over $1 billion in assets as of January 1, 2026, diverging from the California Democratic Party’s recent endorsement. The local vote included five abstentions, five absences and one member who offered no endorsement, and Nancy Pelosi declined to back the measure. Supporters argue the tax could raise tens of billions for healthcare, but opponents fear it may trigger an exodus of tech founders and investors whose wealth is largely stock-based.

Six billionaires have already moved out ahead of the January 1 deadline, and billionaire-backed Proposition 41 and Proposition 42 aim to undermine the tax. The split mirrors broader dissent, with Governor Gavin Newsom and candidate Xavier Becerra also opposing the proposal.