# California Democratic Party breaks with Newsom to endorse billionaire tax > Source: > Published: 2026-08-03 23:17:38+00:00 **Getting your** [Trinity Audio](//trinityaudio.ai)player ready...The California Democratic Party endorsed a proposed tax on billionaire wealth on Sunday, breaking with Gov. Gavin Newsom and several powerful labor unions and deepening a fight over whether the measure would protect healthcare or drive tax revenue out of the state. Proposition 40, [which is one of 14 statewide initiatives on the ballot in November](https://www.mercurynews.com/2026/06/26/lots-of-measures-have-qualified-for-californias-november-ballot-heres-what-they-would-do/), would implement a one-time 5% tax on California’s roughly 200 billionaires. Supporters estimate it would raise roughly $100 billion over several years, though the nonpartisan Legislative Analyst’s Office projects “tens of billions.” Ninety percent would go toward healthcare, with the remainder funding education, food assistance and administration. The vote to endorse the measure by party delegates from across the state and members of the executive board initially failed as backers were unable to cobble together enough support to cross the 60% threshold needed. A subsequent vote, however, succeeded after several voters changed their stance. In a state where Democratic voters outnumber Republicans nearly 2-1, the party’s endorsement is influential to many of the state’s voters and will prominently appear on many campaigns’ websites and mailers. “It reflects the broader, deeper divide within Democratic Party politics nationally about the strength of Democratic Socialists of America, the strength of the left, yet also illustrates the deep divide within the labor movement that affects the Democratic Party,” Sonoma State Political Science Professor David McCuan said about the endorsement. Prop. 40 is being backed by SEIU United Healthcare Workers West, a union representing 120,000 workers across the state, and Teamsters California, along with politicians like Rep. Ro Khanna, a Santa Clara Democrat. Dave Regan, president of SEIU United Healthcare Workers West, said in a statement to Politico that the “endorsement puts to rest the idea that California Democrats are not united by the billionaire tax — they are.” But unions that have come out against the tax — like the California Teachers Association, the California State Council of Laborers and United Domestic Workers — and Newsom have raised concerns that the tax would have long-term effects on the state’s economy and tax base. They also argue that the funding is one-time and wouldn’t create a sustainable pipeline for some of California’s long-term needs. Newsom, who is weighing a 2028 presidential bid, [recently called for a national tax on billionaires](https://www.mercurynews.com/2026/06/25/a-tax-on-billionaires-to-fund-healthcare-is-officially-on-the-ballot/), arguing that it is the better approach because “wealth is movable, and it shops for the state with the lowest taxes.” A spokesperson for Newsom did not respond to a request for comment. The party’s endorsement of the wealth tax, McCuan said, let’s the governor continue his “two-step kind of dance” as he portrays himself as “someone who wants to be on the cutting edge of issues, but also does not want to be a knee-jerk California liberal and painted as such as he looks to run for the White House.” Golden Promise, one of the groups opposing the wealth tax, declined to comment on the California Democratic Party’s endorsement of the measure. Spokesperson Roger Salazar previously called it a “convoluted nightmare of a measure” and said it was the “wrong approach for California’s small businesses and working families.” The party also decided this weekend whether to support or oppose the 13 other measures on the November ballot. Propositions 41 and 42 — the two measures [aimed at counteracting the billionaires tax](https://www.mercurynews.com/2026/03/15/bay-area-billionaires-fighting-california-ballot-initiative-tax-wealth-spending-big-kill-it/) — garnered an opposition position from the party. Either measure could nullify the wealth tax if it passes with more votes. Proposition 45, which would make major changes to the California Environmental Quality Act, also received an opposition position vote from the party. Sponsored by the California Chamber of Commerce, the measure would set a 365-day limit on environmental reviews for a wide range of projects, including new reservoirs, housing, public transit, solar farms and battery storage facilities. A recent poll from the Public Policy Institute of California [found that 73% of likely voters supported the measure](https://www.mercurynews.com/2026/07/15/measure-to-change-landmark-california-environmental-quality-act-has-big-lead-in-new-poll/). California Democrats also have opted to oppose Proposition 39, [a measure requiring voter ID](https://www.mercurynews.com/2026/08/03/california-voter-id-prop-39-both-sides-sue/), and Proposition 43, which [would make it harder to pass local taxes put on the ballot](https://www.mercurynews.com/2026/07/27/california-proposition-43/) through the signature gathering process. Sunday’s endorsement vote also had the party weighing in on the state insurance commissioner race between Sen. Ben Allen and former San Francisco Supervisor Jane Kim. Allen narrowly earned the support of the party with 60.68% of the vote. The consequential race, which sees [two Democrats going against each other, will decide who will succeed Ricardo Lara to lead the California Department of Insurance](https://www.mercurynews.com/2026/06/02/california-insurance-commisioner-election/), an agency grappling with the state’s home insurance crisis that approves rate hikes and investigates complaints against insurers. “Every endorsement we make is earned, not given,” California Democratic Party Chair Rusty Hicks said about the slate of endorsements over the weekend. “California 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.”