California Democratic Party backs billionaire tax measure despite internal opposition

The California Democratic Party (CADEM) announced on Sunday that its executive board voted narrowly to endorse Proposition 40, a statewide ballot initiative that would impose a one‑time, five‑percent tax on the net worth of the state’s roughly 200 billionaires. The measure, which targets the wealthiest individuals in California, is designed to generate a single infusion of revenue that supporters say could fund education, health‑care and climate programs. The board’s vote, reported as a 9‑8 margin, marks the party’s first official backing of the proposal despite opposition from several prominent Democrats, including Governor Gavin Newsom, who has publicly questioned the tax’s fairness and potential economic impact.

Proposition 40 is projected to raise between $15 billion and $20 billion, depending on asset valuations, and would be collected in a single payment rather than as an ongoing levy. While the Democratic Party’s endorsement provides a boost to the campaign, the measure faces a divided political landscape, with some legislators and business groups arguing that the tax could discourage investment and prompt capital flight. The initiative is slated for the November ballot, and both supporters and opponents are expected to intensify their outreach as the election approaches, making the upcoming weeks critical for shaping voter opinion on the one‑time wealth tax.