California Democrats defy Gavin Newsom and Xavier Becerra as they vote to back billionaires tax

California Democrats moved a step closer Saturday to officially backing a controversial billionaire wealth tax — despite opposition from Gavin Newsom and Xavier Becerra. The California Democratic Party’s resolutions committee voted to recommend support for Proposition 40, a November ballot measure that would impose a one-time 5% tax on roughly 200 California billionaires.Supporters argue the measure would generate an estimated $100 billion to help offset federal healthcare funding cuts, but critics warn it could drive wealthy residents and investment out of the state.The committee’s vote does not make the endorsement official.The proposal must still be approved by at least 60% of delegates during Sunday’s general session, although delegates could instead vote to take no position, with a simple majority or remove the recommendation for a separate floor debate.The recommendation nevertheless puts the party’s grassroots activists at odds with some of California’s highest-profile Democrats.

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By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story Newsom has repeatedly opposed the state wealth tax, arguing California would be put at a competitive disadvantage if it acted alone because billionaires could simply move to lower-tax states.Instead, the outgoing governor of California has advocated for a federal wealth tax, saying a nationwide approach would prevent the wealthy from relocating to avoid paying. Becerra has also broken with supporters of Proposition 40.On Friday, the Democratic nominee for governor reaffirmed that he opposes the billionaire tax while announcing his positions on several November ballot measures.Instead, Becerra endorsed Proposition 3, which would permanently extend an existing income tax surcharge on high earners to fund education, whil...