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California Dems defy Gavin Newsom, Xavier Becerra on billionaires tax
New York Post • • nation
Key Points:
- The California Democratic Party officially endorsed Proposition 40, a controversial ballot measure imposing a one-time 5% tax on approximately 200 billionaires, despite opposition from Governor Gavin Newsom and gubernatorial nominee Xavier Becerra.
- The endorsement came after a contentious convention vote, narrowly surpassing the 60% threshold required, highlighting divisions within the party.
- Governor Newsom and Becerra oppose the measure, arguing a state-only wealth tax could drive billionaires out of California, with both favoring federal solutions or alternative tax measures like Proposition 3.
- Supporters claim Proposition 40 could raise $100 billion to offset federal healthcare funding cuts, gaining backing from progressive figures and some labor groups, while opponents, including business interests, warn it may harm investment and economic competitiveness.
- The endorsement underscores a significant split within California Democrats, with progressive activists embracing the tax and party leaders resisting, setting the stage for a contentious debate ahead of the November election.
