California Democrats endorse Proposition 40, a ballot measure that would impose a one-time 5% tax on the state’s 200 billionaires based on net worth to raise money for healthcare. The California Democratic Party (CADEM) backs the measure despite opposition from within the party, including concerns raised by Gov. Gavin Newsom and criticism from some labor leaders.
According to reporting from multiple outlets, CADEM’s executive board votes narrowly to support Prop. 40, highlighting divisions inside the Democratic coalition. The measure is framed as targeting the state’s richest residents to fund healthcare, and proponents argue it would generate substantial revenue. Opponents within the party dispute the approach and point to reservations about the political and policy implications of a billionaire tax.
The internal debate underscores the measure’s high profile and the challenges of building unified party support ahead of the election. While CADEM formally backs Prop. 40, the governor’s position and additional intra-party resistance indicate the outcome remains politically contested.
