California Democratic Party Endorses Billionaire Asset Tax

The California Democratic Party executive board voted on Sunday in San Diego to endorse Proposition 40, a ballot measure proposing a one-time 5% tax on billionaire assets. The measure intends to generate $100 billion over five years to fund healthcare and restore safety-net programs, specifically to offset cuts to food assistance and Medicaid resulting from the federal One Big Beautiful Bill Act.

The endorsement follows a push by Representative Maxine Waters to secure critical votes. It also follows a signature-gathering campaign led by the union SEIU-United Healthcare Workers West. Alongside the tax measure, the party voted to oppose a voter ID measure, a proposal to weaken the California Environmental Quality Act, and two measures intended to undercut Proposition 40.

Despite the board's decision, the measure has created divisions within the party. Governor Gavin Newsom, gubernatorial candidate Xavier Becerra, and the California Teachers Association oppose the tax, describing it as an unreliable and untested scheme. These opponents argue the tax could destabilize the state budget and incentivize wealthy residents to leave California.