The California Democratic Party has endorsed a November ballot measure to tax billionaires’ wealth, bucking Governor Gavin Newsom and influential labor unions that oppose it.
The party’s executive board narrowly voted on Sunday to back Proposition 40, a one-time 5 percent levy on billionaires’ wealth. Rep. Maxine Waters attended the board meeting in San Diego, encouraging key yes votes, according to three people with knowledge of her efforts.
Proponents of the tax initially fell just short of the 60 percent threshold needed to get the party’s backing but later picked up enough votes to secure an endorsement.
The Divide
The wealth tax has divided labor unions, drawing opposition from the California Teachers Association and other powerful groups, in part because it has complicated efforts to extend an income tax on the wealthy that funds schools — another measure that will also appear on the November ballot.
SEIU-UHW, the union that spearheaded the tax, has pitched it as a way to offset federal health care funding cuts. Opponents have warned that the one-time levy will have unintended consequences, including driving ultrawealthy residents and their tax dollars out of state.
“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 after the vote. “We need smart, durable solutions to our biggest challenges, not unreliable, untested schemes that shortchange healthcare, education, and public safety.”
Waters’ Intervention
Waters’ support — adding to previous backing from Vermont Sen. Bernie Sanders — seemed to energize party activists, some of whom chanted her name during the votes, according to one attendee. The measure had previously garnered few endorsements from high-ranking elected officials in the party, including just one member of California’s congressional delegation, Rep. Ro Khanna.
The Proponents’ Response
SEIU-UHW quickly cast the outcome as evidence that rank-and-file Democrats were lining up behind the progressive proposal.
“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. “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.”
The party also voted to oppose two billionaire-backed measures to undercut Proposition 40.
The Bottom Line
The California Democratic Party has endorsed Proposition 40, a November ballot measure imposing a one-time 5 percent tax on billionaires’ wealth. The endorsement bucked Governor Gavin Newsom and the California Teachers Association, which oppose the measure. SEIU-UHW, which spearheaded the tax, celebrated the decision, while opponents warned it could drive wealthy residents out of state. Rep. Maxine Waters helped secure the endorsement.
