California Democrats have endorsed the state’s billionaire tax measure, adding another layer to the already heated debate over the proposed one-time, 5% tax on the wealth of the Golden State’s billionaires.
The party voted Sunday, Aug. 2, to endorse Proposition 40, according to reporting from POLITICO. The California Democratic Party also released its positions on key political offices and statewide ballot measures.
“Every endorsement we make is earned, not given,” Rusty Hicks, the party’s chair, said in a statement. “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.”
SEIU-United Healthcare Workers West, one of the main organizations behind the effort that collected the signatures necessary to qualify the measure for the November ballot, touted the endorsement as a symbolic win.
“This endorsement puts to rest the idea that California Democrats are not united by the billionaire tax — they are,” Dave Regan, president of SEIU-United Healthcare Workers West, told The Los Angeles Times.
Those trying to thwart the effort disagree.
In a statement to POLITICO, a spokesperson for one of the opposition groups highlighted those against Proposition 40 — including Gov. Gavin Newsom, Democratic gubernatorial candidate Xavier Becerra, the California Teachers Association and more — “because it’s bad for our budget, bad for our economy, and bad for our future.”
“We need smart, durable solutions to our biggest challenges, not unreliable, untested schemes that shortchange healthcare, education, and public safety,” the spokesperson told POLITICO.
Here’s what to know about the proposed billionaire tax before Californians head to the polls this fall.
What to know about the ‘2026 Billionaire Tax Act’
The “2026 Billionaire Tax Act,” or Initiative No. 25-0024, was proposed by SEIU-United Healthcare Workers West and would impose a one-time 5% tax on billionaires’ net wealth, according to a filing for the initiative.
The measure qualified for the November ballot in June after clearing the signature hurdle in late April. Newsom failed to stop the measure from heading to the ballot after talks collapsed with union backers at SEIU-United Healthcare Workers West. The California Secretary of State certified the measure for November’s ballot on June 25.
A May poll from the Public Policy Institute of California found 54% percent of likely voters would support the initiative.
Under the proposition, 90% of the revenue from the tax would go toward health care programs, while the remaining 10% would go to education and food assistance programs.
The tax would be due in 2027, according to the Legislative Analyst’s Office. Taxpayers, however, could opt to pay over time with payments spread out over five years at a higher cost.
The state would likely collect tens of billions of dollars, but the exact amount would be difficult to predict given several factors, the LAO said.
SEIU‑UHW says the measure is needed “to prevent the collapse of California healthcare and help fund California public K-14 education and state food assistance programs.”
The labor union says the measure is in response to President Donald Trump’s administration’s H.R. 1, or “One Big Beautiful Bill Act,” which “slashes $100 billion from California’s healthcare funding over the next five years, pushing our state towards a healthcare collapse.” The labor union has called the measure “a commonsense solution to a looming crisis.”
The tax “would be paid only by Californians worth more than $1 billion,” or about 200 people, and would raise $100 billion for the state, SEIU‑UHW says.
Bernie Sanders is among the measure’s proponents, having attended the proposal’s campaign kickoff in Los Angeles on Wednesday, Feb. 18, USA TODAY reported.
Meanwhile, opponents, such as Newsom, worry that the measure will drive billionaires to flee the state, along with their tax dollars, The New York Times reported.
Newsom vowed to fight the proposed measure in his interview with The Times.
“This will be defeated — there’s no question in my mind,” Newsom told The New York Times. “I’ll do what I have to do to protect the state.”
Earlier this year, Google founders Sergey Brin and Larry Page had reduced their “California presence,” The New York Times reported. At the same time, Meta CEO Mark Zuckerberg was reportedly eyeing purchasing a mansion in Florida, the Wall Street Journal reported in February.
“This is my fear,” Newsom told POLITICO of his worries about California billionaires preparing to flee the state in response to the proposed measure. “It’s just what I warned against. It’s happening.”
When is California’s general election?
California’s general election will be held Tuesday, Nov. 3. Voters will be asked to choose winners for U.S. Senate, U.S. House, governor, and key statewide offices.
This article originally appeared on Palm Springs Desert Sun: California Democrats endorse billionaire wealth tax ballot measure
Reporting by Daniella Segura, USA TODAY NETWORK / Palm Springs Desert Sun
USA TODAY Network via Reuters Connect
By Daniella Segura, USA TODAY NETWORK | USA TODAY Network
