They’re really going to destroy the goose that laid the golden egg. The California Democratic Party endorsed a November ballot initiative Sunday that would impose a one-time tax on billionaires’ wealth, placing the state party at odds with Gov. Gavin Newsom and several influential labor unions.
The party’s executive board narrowly approved Proposition 40 after earlier efforts to endorse the measure or remain neutral failed to secure enough support, according to Politico.
Rep. Maxine Waters attended the meeting in San Diego and personally worked to secure several decisive votes, according to three people familiar with her involvement who spoke on condition of anonymity because of the political sensitivity surrounding the measure.
Before the endorsement, Proposition 40 had attracted little support from California’s most prominent Democratic officeholders. Rep. Ro Khanna was the only member of the state’s congressional delegation publicly backing the proposal.
Supporters initially fell short of the 60 percent threshold required to obtain the party’s formal endorsement but later secured the additional votes needed for approval.
SEIU United Healthcare Workers West, the union sponsoring the proposed 5 percent levy on billionaires, portrayed the vote as evidence that the party’s activists had united behind the measure.
“This endorsement puts to rest the idea that California democrats are not united by the billionaire tax — they are,” said Dave Regan, president of SEIU United Healthcare Workers West, in a statement. “Polling shows that more than 80% of registered Democrats support this critical solution to our healthcare crisis and now the Democratic party of California has officially embraced that strong support through this endorsement.”
Supporters and opponents lobbied heavily in the days before the vote, circulating endorsements, polling results and internal assessments of executive board members.
One opposition document shared with POLITICO outlined expected vote totals and identified members who could potentially be persuaded to change sides.
Waters’ appearance, following an earlier endorsement from Sen. Bernie Sanders of Vermont, appeared to energize supporters. Some activists chanted Waters’ name during the proceedings, according to one person who attended the meeting.
The party also voted to oppose two competing ballot measures backed by billionaires that would weaken Proposition 40.
The proposed wealth tax has divided organized labor in California. The California Teachers Association and other unions oppose the measure in part because it could interfere with efforts to renew an existing income tax on high earners that provides funding for public schools. That proposal is also scheduled to appear on the November ballot.
SEIU-UHW has promoted Proposition 40 as a way to offset federal reductions in health care spending. Opponents argue that the one-time levy could encourage wealthy residents to leave California, reducing the state’s long-term tax base.
“Governor Newsom, Democratic Candidate for Governor Xavier Becerra, the California Teachers Association, California Professional Firefighters, Planned Parenthood Affiliates of California, and so many others are standing together against Prop. 40 because it’s bad for our budget, bad for our economy, and bad for our future,” a spokesperson for one arm of the opposition said in a statement after the vote. “We need smart, durable solutions to our biggest challenges, not unreliable, untested schemes that shortchange healthcare, education, and public safety.”
The passage will almost certainly negatively impact Gavin Newsom’s run for president in 2028.
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