Supporters of the Proposition 40 billionaire wealth tax hold signs at a meeting of the California Democratic Party’s resolutions committee on Saturday, August 1, 2026 at the Sheraton San Diego Resort in San Diego, CA.
Ben Paviour
ben.pavior@sacbee.com
The California Democratic Party’s executive board voted Sunday to support a ballot measure that would tax billionaire’s wealth to help plug looming healthcare cuts.
The party also took official positions on the other 13 ballot initiatives.
The pitched and often emotional vote over Proposition 40 exposed deep fissures in the state party over how to respond to growing grassroots anger over wealth inequality. And the endorsement, which narrowly failed to clear the 60% threshold on its first vote, only occurred after two delegates switched sides on a subsequent round.
Delegates and observers erupted into cheers after 61% of the 235 executive board delegates in attendance voted to support Prop. 40.
The vote is a major boost to the one-time, 5% tax that has drawn opposition from Gov. Gavin Newsom, business groups and some labor organizations like the California Teachers Association and United Domestic Workers.
The party’s endorsement that could show up on millions of mailers sent to voters and gives the measure momentum headed into a similar vote at a gathering of 1,300 unions at the California Federation of Labor Unions on Tuesday.
Proponents of the measure argued it was necessary to address crisis-level cuts to healthcare funding. Contra Costa County Kaiser nurse Amy Scott-Slovick teared up Sunday as she testified about the potential for hospital closures, layoffs and degraded patient care.
Others, like San Diego Democratic Party chair Will Rodriguez-Kennedy, told the gathering that party’s legitimacy was at stake.
“Not sending this message confirms everything that people say about the Democratic Party: That we are weak, that we are feckless, that we are unable to meet the measure of the moment,” Rodriguez-Kennedy said.
Critics of the measure tried to focus conversation on the potential fiscal impacts of the tax. Nonpartisan legislative analysts say the state could lose hundreds of millions in income taxes as billionaires leave the state.
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Others said Prop. 40 risks of further dividing the party ahead of crucial midterm elections.
“I can remember very few times when our party has been this divided over an issue,” CTA associate Executive Director Teri Holoman told the Democrats. “Despite its noble intention, we all agree with this measure has created more divisions in the crisis moment. We don’t win that moment by creating the crisis within our own party.”
No on 40, a group opposed to the tax funded by groups representing physicians and community health centers, issued a statement after the vote noting a bench of opponents that include Democratic gubernatorial hopeful Xavier Beccera, California Professional Firefighters and Planned Parenthood Affiliates of California.
“We need smart, durable solutions to our biggest challenges not unreliable, untested schemes that shortchange healthcare, education, and public safety,” the statement said.
The Democrats were far less divided over two measures heavily funded by Google co-founder Sergey Brin, the world’s fourth-wealthiest man, that includes provisions that would undermine the wealth tax if they were passed. Prop. 41 would also create audits on state programs funded by new special taxes, while Prop. 42 would prevent new state property taxes.
The party will recommend voters cast ballots against both measures.
And despite minor divisions, CADEM’s executive board voted to recommend a “no” vote on Prop. 45, a California Chamber of Commerce-backed measure designed to overhaul the California Environmental Quality Act.
SEIU-UHW suffered a defeat on a separate ballot measure, Prop. 44, which would require community health clinics to spend 90% of their revenue on program services. Speaking to the CADEM resolutions committee Saturday night, the union’s political director, Gustavo Medina, accused the clinics of wasting taxpayer dollars on CEO salaries and union busting. But the committee’s members questioned whether the measure was fully thought out.
“It feels punitive to me,” the committee’s co-chair, Agi Kessler, said. “I’m just baffled.”
The party backed state Sen. Ben Allen, D-Santa Monica, for insurance commissioner over rival Democrat Jane Kim and took positions on all 14 ballot measures:
Prop. 1: SupportProp. 2: SupportProp. 3: SupportProp. 4: SupportProp. 5: SupportProp. 37: SupportProp. 38: SupportProp. 39: OpposeProp. 40: SupportProp. 41: OpposeProp. 42: OpposeProp. 43: OpposeProp. 44: OpposeProp. 45: Oppose
This story was originally published August 2, 2026 at 2:14 PM.
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Ben Paviour is the California political power reporter for The Sacramento Bee’s Capitol Bureau. He previously covered Virginia state politics for public radio and was a local investigations fellow at The New York Times. He got his start in journalism at the Cambodia Daily in Phnom Penh. Before becoming a reporter, he worked in local government and tech in the Bay Area.