California’s billionaire tax proposal is splintering the state’s Democratic Party, with party leaders opposing the wealth tax even as voters, and especially young voters, appear eager to increase taxes on the rich.
The latest division appeared last week when the San Francisco Democratic Party voted to oppose Proposition 40, the controversial wealth tax on the November ballot. The decision goes against the state party, which endorsed the plan earlier in the month.
Michael Nguyen, a candidate for the SF Board of Supervisors, said the local party’s rejection of the state party’s position on the tax was unprecedented, and he called out local Democrats for supporting the ultrawealthy.
“My colleagues chose billionaires over patients, caregivers, seniors, children, and working families,” he said in an email to SFGATE.
Polling shows that Democrats overwhelmingly support the measure, which would impose a one-time 5% wealth tax on any resident who was worth more than $1 billion and be implemented next year.
A May poll from Public Policy Institute of California found that 54% of likely voters, and 76% of Democrats, were in favor of a billionaire tax. Renters and young people were also highly supportive of the measure, with 71% and 67%, respectively, saying they plan to vote for it.
A more recent August poll found that 70% of Democrats support Prop. 40, and 75% of people ages 18 to 29 support the proposed tax. However, the poll found only 48% of likely voters supported the measure.
Attendees cheer during the speach of US Senator Bernie Sanders, Independent of Vermont, during the campaign kickoff for the California Billionaire Tax Act at The Wiltern in Los Angeles, February 18, 2026. Sanders is seeking the support of California voters for a November’s ballot initiative of an emergency tax on billionaires to help the state’s healthcare system. (Photo by Patrick T. Fallon / AFP via Getty Images) (Patrick T. Fallon/AFP via Getty Images)
Despite their voters supporting the tax, the majority of party leaders have landed against the ballot proposal. Newsom has urged voters to reject the tax, as has gubernatorial candidate Xavier Becerra. Both have said the law will backfire by driving the ultrawealthy out of the state. Rep. Ro Khanna, whose district includes Silicon Valley, is one of the only high-profile advocates for the billionaire tax. He has also proposed a national tax on the ultrawealthy.
Most of San Francisco’s top politicians declined to even take a position on the tax at last week’s party meeting. According to endorsement vote tallies, state Sen. Scott Wiener abstained from voting on the endorsement and Supervisor Connie Chan was absent. Both are looking ahead to a competitive November congressional run to replace former House Speaker Nancy Pelosi.
Ian Krager, a spokesperson for Chan, told SFGATE that Chan had a scheduling conflict with local faith leaders and a fundraiser. Politico Playbook reported earlier that Chan had a fundraiser hosted by Pelosi the same evening at the luxury SF restaurant Julius’ Castle, where tickets ranged from $1,000 to $3,500. Krager said that despite her absence, Chan is in support of it.
Wiener, who voted on other issues during last week’s meeting, did not return SFGATE’s request for comment on his abstention. Wiener previously said he opposed the billionaire tax measure.
Pelosi, who was not in attendance but had a representative there, cast a “no endorsement” vote. Assemblymember Matt Haney, who is running for Wiener’s seat in the state Senate, and U.S. Rep. Kevin Mullin were absent and did not vote. Lt. Gov. Eleni Kounalakis and state Treasurer Fiona Ma voted “no.”
Meanwhile, Jane Kim, a Bernie Sanders-endorsed progressive candidate for California insurance commissioner, and Gordon Mar, a former member of the Board of Supervisors, supported Proposition 40.
The measure, which is sponsored by the Service Employees International Union-United Healthcare Workers West, one of the country’s largest healthcare unions, is aimed at raising revenue to offset federal cuts to Medi-Cal health benefits and to education. The California Budget & Policy Center, a left-leaning nonprofit, has said there’s a “high degree of uncertainty” over how much money it will raise, but it estimated it would be in the tens of billions.
A supporter with the Billionaire Tax Now coalition holds a placard during a media briefing in Los Angeles on April 27, 2026. Proposition 40 on California’s November ballot would levy a one-time 5% tax on California billionaires. (Frederic J. Brown/AFP via Getty Images)
In early August, the California Democratic Party endorsed the measure in a narrow vote. CalMatters reported that Democratic National Committee member David Atkins said voting against it would look bad to voters “who already believe that we are in the pockets of corporations and billionaires.”
San Francisco is a global capital for the ultrawealthy, with 99 of the world’s billionaires living in the city, according to Altrata, a data agency that tracks wealthy people. In addition, more than 60% of the city’s residents are renters, according to recent census data, and about 34% of city residents are under 30 years old.
The divisive measure has even split billionaires. Nvidia CEO Jensen Huang has dismissed the idea of the tax being damaging to him, even though it could cost him $8 billion. “In a way, that’s our way of giving back,” Huang said in May. But Google co-founder Sergey Brin has framed the prospect of a billionaire tax as an existential threat. He moved last year to the Nevada side of Lake Tahoe, apparently to avoid the tax, and has donated $82 million to Building a Better California, a political action committee funded by tech and finance executives in an effort to squash the tax.
Peter Gallotta, a committee member of the San Francisco chapter, who was one of four to vote in favor of Prop. 40, said the party’s “no” vote would send signals to already disillusioned constituents. He said at the meeting that he believed he was one of the only Democrats in the city who is willing to put a flag in the sand and support taxing the rich, and that any opposition “is nothing more than a gift to the billionaires who are fighting it.”
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This article originally published at The billionaire tax is breaking the California Democratic Party.