{"id":422049,"date":"2026-08-02T22:26:17","date_gmt":"2026-08-02T22:26:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/422049\/"},"modified":"2026-08-02T22:26:17","modified_gmt":"2026-08-02T22:26:17","slug":"california-dems-defy-gavin-newsom-xavier-becerra-on-billionaires-tax","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/422049\/","title":{"rendered":"California Dems defy Gavin Newsom, Xavier Becerra on billionaires tax"},"content":{"rendered":"

California Democrats officially endorsed a controversial billionaire wealth tax on Sunday, putting the state\u2019s Democratic Party at odds with Gov. Gavin Newsom<\/a> as well as their own gubernatorial nominee Xavier Becerra <\/a>ahead of November\u2019s election.<\/p>\n

Delegates at the California Democratic Party convention in San Diego voted to back Proposition 40, a ballot measure that would impose a one-time 5% tax on roughly 200 California billionaires. <\/p>\n

\u201cEvery endorsement we make is earned, not given,\u201d California Democratic Party Chair Rusty Hicks said in a statement to the Post.<\/p>\n

\u201cCalifornia Democrats take a deliberative approach to our endorsement process that puts our values first and ensures our members have a meaningful voice in shaping the future of our state.\u201d<\/p>\n

The endorsement came after an unusually contentious floor fight that exposed divisions within the party and required multiple votes before clearing the party\u2019s 60% threshold.<\/p>\n

An initial vote fell just short of the required supermajority, receiving about 59.2% support. Delegates then rejected a separate proposal for the party to take no position before reconsidering the endorsement itself. On the second attempt, the measure passed 145-90, giving it roughly 61.7% support.<\/p>\n

L\u2013R: Ancestry Chair Mark Thompson, Gavin Newsom, Jennifer Siebel Newsom and media exec Tammy Haddad. Getty Images for Haddad Media<\/p>\n

The endorsement followed days of debate among party delegates and labor organizations over both the proposal itself and the campaign behind it.<\/p>\n

The party\u2019s decision places its delegates in direct conflict with some of California\u2019s most prominent Democratic leaders.<\/p>\n

Newsom has consistently opposed a California-only<\/a> wealth tax, arguing it would put the state at an economic disadvantage because wealthy residents could relocate to states with lower taxes. <\/p>\n

Instead, the outgoing governor has long argued that a federal wealth tax would be more effective by preventing billionaires from avoiding the levy by moving elsewhere.<\/p>\n

Becerra, vying to replace Newsom, has also rejected Proposition 40.<\/p>\n

The Democratic nominee for governor reiterated his opposition Friday while unveiling his positions on several statewide ballot measures, instead endorsing Proposition 3, which would permanently extend an existing income tax surcharge on high earners to fund education.<\/p>\n

Rusty Hicks, party chair of the California Democratic Party, speaks at the California Democratic Convention. Los Angeles Times via Getty Images<\/p>\n

Supporters of Proposition 40<\/a> argue the one-time tax would raise an estimated $100 billion, with most of the money earmarked to offset federal healthcare funding reductions tied to President Donald Trump\u2019s tax-and-spending legislation.<\/p>\n

The proposal has attracted support from Sen. Bernie Sanders, Rep. Ro Khanna, Teamsters California, AFSCME California and the California Young Democrats.<\/p>\n

But the measure has also divided organized labor and Democratic activists. <\/p>\n

During the convention debate, supporters argued the state needed additional revenue to protect healthcare services, while opponents questioned whether the campaign had built broad enough support across the Democratic coalition before qualifying the initiative for the ballot.<\/p>\n

Newsom has repeatedly opposed the state wealth tax, arguing California would be put at a competitive disadvantage. AP Photo\/Jae C. Hong<\/p>\n

Business groups have also mounted strong opposition to the measure, warning it could discourage investment and encourage wealthy Californians to leave the state. <\/p>\n

A political action committee opposing the initiative has raised more than $118 million, with much of its funding coming from billionaire donors, including Google co-founder Sergey Brin.<\/a><\/p>\n

The endorsement marks one of the clearest public splits within California\u2019s Democratic Party this election cycle, with progressive activists embracing the wealth tax while Newsom, Becerra and other party leaders remain opposed.<\/p>\n

Supporters of the initiative hailed the vote as proof that Democratic voters have rallied behind the proposal despite opposition from some of the state\u2019s highest-profile elected officials.<\/p>\n

\u201cThis endorsement puts to rest the idea that California Democrats are not united by the billionaire tax \u2013 they are,\u201d said Dave Regan, president of SEIU United Healthcare Workers West. \u201cPolling 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.\u201d<\/p>\n

\u201cWe refuse to accept a future where tens of millions of working families pay the price for tax cuts that benefit 200 billionaires,\u201d said Suzanne Jimenez, the ballot initiative\u2019s official proponent and chief of staff at SEIU United Healthcare Workers West. \u201cWe are proud to stand alongside California Democrats in fighting for passage of the billionaire tax \u2013 Prop. 40. We will work together to put patients first. We will ask those who have gained the most from our economy to help preserve the healthcare access, including to emergency services, that every Californian needs and deserves.\u201d<\/p>\n

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Proposition 40, formally known as the California 2026 Billionaire Tax Act, will appear on the statewide ballot on Nov. 3.<\/p>\n

A spokesperson for Becerra\u2019s campaign confirmed to The California Post that the Democratic nominee remains opposed to Proposition 40 despite the party\u2019s endorsement. <\/p>\n

Newsom\u2019s office did not respond to a request for comment before publication.<\/p>\n

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