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

California Democrats officially endorsed a controversial billionaire wealth tax on Sunday, putting the state’s Democratic Party at odds with Gov. Gavin Newsom as well as their own gubernatorial nominee Xavier Becerra ahead of November’s election.

Delegates at the California Democratic Party convention in San Diego voted to back Proposition 40, a ballot measure that would impose a one-time 5% tax on roughly 200 California billionaires.

“Every endorsement we make is earned, not given,” California Democratic Party Chair Rusty Hicks said in a statement to the Post.

“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.”

The endorsement came after an unusually contentious floor fight that exposed divisions within the party and required multiple votes before clearing the party’s 60% threshold.

An initial vote fell just short of the required supermajority, receiving about 59.2% support. Delegates then rejected a separate proposal for the party to take no position before reconsidering the endorsement itself. On the second attempt, the measure passed 145-90, giving it roughly 61.7% support.

The endorsement followed days of debate among party delegates and labor organizations over both the proposal itself and the campaign behind it.

The party’s decision places its delegates in direct conflict with some of California’s most prominent Democratic leaders.

Newsom has consistently opposed a California-only wealth tax, arguing it would put the state at an economic disadvantage because wealthy residents could relocate to states with lower taxes.

Instead, the outgoing governor has long argued that a federal wealth tax would be more effective by preventing billionaires from avoiding the levy by moving elsewhere.

Becerra, vying to replace Newsom, has also rejected Proposition 40.

The Democratic nominee for governor reiterated his opposition Friday while unveiling his positions on several statewide ballot measures, instead endorsing Proposition 3, which would permanently extend an existing income tax surcharge on high earners to fund education.

Supporters of Proposition 40 argue the one-time tax would raise an estimated $100 billion, with most of the money earmarked to offset federal healthcare funding reductions tied to President Donald Trump’s tax-and-spending legislation.

The proposal has attracted support from Sen. Bernie Sanders, Rep. Ro Khanna, Teamsters California, AFSCME California and the California Young Democrats.

But the measure has also divided organized labor and Democratic activists.

During the convention debate, supporters argued the state needed additional revenue to protect healthcare services, while opponents questioned whether the campaign had built broad enough support across the Democratic coalition before qualifying the initiative for the ballot.

Business groups have also mounted strong opposition to the measure, warning it could discourage investment and encourage wealthy Californians to leave the state.

A political action committee opposing the initiative has raised more than $118 million, with much of its funding coming from billionaire donors, including Google co-founder Sergey Brin.

The endorsement marks one of the clearest public splits within California’s Democratic Party this election cycle, with progressive activists embracing the wealth tax while Newsom, Becerra and other party leaders remain opposed.

Proposition 40, formally known as the California 2026 Billionaire Tax Act, will appear on the statewide ballot on Nov. 3.

The California Post has reached out to the offices of Gov. Gavin Newsom and Democratic gubernatorial nominee Xavier Becerra for comment on whether their positions have changed following the California Democratic Party’s endorsement of Proposition 40.

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