California Democrats support a proposed one-time wealth tax on billionaires, despite opposition from Governor Gavin Newsom.
The California Democratic Party has officially endorsed a proposed one-time wealth tax on billionaires of up to 5%. Californians will decide whether to adopt the proposal during the 2026 midterm election. While the party's executive board voted in favor of the proposal, the decision revealed a division within the Democratic party. U.S. Rep. Ro Khanna supports the measure, but Governor Gavin Newsom has stated he will vote against it. Newsom argued that the measure dedicates too much revenue to a single category of state spending and expressed a preference for a national billionaires' tax instead. The proposal aims to take a more significant portion of the administration's state revenue from the wealthiest individuals. However, some wealthy residents are already beginning to give away cash to avoid the tax. The initial vote by the resolutions committee barely failed to clear the 60% bar, but a subsequent vote successfully cleared the threshold for ratification.