Billionaires open the purse to fight California wealth tax

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Set us as preferred SACRAMENTO — A billionaire-funded political group gave a $5-million donation to the campaign opposing California’s proposed wealth tax, the first of many expected in the expensive fight over a ballot question dividing the state.If approved by voters, Proposition 40 would impose a one-time 5% tax on the assets of billionaires who were residing in the state at the start of this year to pay primarily for healthcare.The ballot measure has splintered California Democrats and their allies, who are at odds over which public services would receive a portion of the revenue and Proposition 40’s long-term impact on the state budget.Politics The California Democratic Party backed Prop.

40, a 5% billionaire tax for healthcare, despite heavy pushback from Newsom and labor leaders.Gov.Gavin Newsom, Democratic gubernatorial candidate Xavier Becerra and groups including Planned Parenthood Affiliates of California and the California Teachers Assn.

oppose the tax, arguing it could push many of the state’s biggest taxpayers to relocate and in effect destabilize the state’s finances.On Monday, nine Democratic state lawmakers announced their opposition to Proposition 40, writing in an open letter to voters that “while well-intentioned, this measure will blow a massive hole in our state budget in the years ahead and undermine our ability to sustain investments in the very priorities Prop 40 claims to support.” Its signers included Assemblymembers Jacqui Irwin (D-Thousand Oaks), Lisa Calderon (D-Whittier) and John Harabedian (D-Pasadena).The California Democratic Party, the California Federation of Labor Unions and progressive officials including Sen.Bernie Sanders (I-VT) and Rep.

Ro Khanna (D-Fremont) support the tax, which is intended to raise roughly $100 billion over five years to backfill federal cuts to healthcare and other social safety net programs by President Trump and the Republican-led...