California Dems Buck Newsom With Vote To Endorse Billionaire Wealth Tax

The committee’s decision advances Proposition 40, formally known as the California 2026 Billionaire Tax Act, toward a potential official party endorsement ahead of the November 3 ballot.

Full approval still requires at least 60 percent of delegates at Sunday’s general session.

Delegates could instead choose, by simple majority, to take no position or to force a separate floor debate.

Whatever the outcome, the committee’s action lays bare a widening rift between the party’s elected leadership and its activist base over how aggressively Sacramento should target private wealth.

Newsom has consistently rejected a state-level wealth tax, warning that California would hand a competitive advantage to lower-tax states if it acted alone. Billionaires, he argues, can simply move.

He has instead pushed for a federal version that would close the exit door.

Becerra staked out identical territory on Friday, the day before the committee vote, announcing his positions on several November measures.