California Democrats Back Billionaire Tax Proposition 40

On Sunday, the California Democratic Party's executive board endorsed Proposition 40, a one-time 5% tax on billionaires' wealth, despite opposition from Governor Gavin Newsom and influential labor unions, including the California Teachers Association. The endorsement came after a narrow vote where proponents initially fell short of the required 60% but later secured enough support.

Rep. Maxine Waters attended the meeting in San Diego, encouraging votes in favor of the measure. The tax has divided labor unions, complicating efforts to extend an income tax on the wealthy that funds schools.

SEIU-UHW, which spearheaded the tax, argues it will help offset federal healthcare funding cuts. Opponents, including various prominent organizations, warn of potential negative consequences, such as driving wealthy residents out of the state.

The California Democratic Party also voted to oppose two billionaire-backed measures aimed at undermining Proposition 40. The endorsement reflects a significant shift in party support, with SEIU-UHW claiming it demonstrates unity among California Democrats regarding the billionaire tax.