Endorses billionaire tax

California Democratic Party endorses billionaire tax

The party’s executive board broke with several labor unions and Gavin Newsom on the measure.

By Blake Jones

The California Democratic Party on Sunday endorsed a November ballot measure to tax billionaires’ wealth, bucking Gov. Gavin Newsom and the influential labor unions that oppose it.

The party’s executive board narrowly voted to back the measure after earlier votes to endorse it and remain neutral failed. Rep. Maxine Waters attended the board meeting in San Diego, encouraging key yes votes to get Proposition 40 over the finish line, according to three people with knowledge of her efforts granted anonymity to discuss the politically fraught issue. The measure had previously garnered few endorsements from high-ranking elected officials in the party, including just one member of California’s congressional delegation, Rep. Ro Khanna.

Proponents of the tax initially fell just short of the 60 percent threshold needed to get the party’s backing, but later picked up a handful of votes to secure an endorsement. SEIU-UHW, the union that spearheaded the one-time, 5 percent levy on billionaires, quickly cast the outcome as evidence that rank-and-file Democrats were lining up behind the progressive proposal.

“This endorsement puts to rest the idea that California democrats are not united by the billionaire tax — they are,” said Dave Regan, president of SEIU United Healthcare Workers West, said in a statement. “Polling shows that more than 80% of registered Democrats support this critical solution to our healthcare crisis and now the Democratic party of California has officially embraced that strong support through this endorsement.”

Both sides raced to whip support ahead of the weekend vote, rolling out endorsements and polls to bolster their respective cases. A document shared with POLITICO and characterized as being used by the opposition broke down in detail how different party members might vote and who could be persuaded.

Waters’ support — adding to previous backing from Vermont Sen. Bernie Sanders — seemed to energize party activists, some of whom chanted her name during the votes, according to one attendee. A representative for Waters’ campaign, when reached, did not immediately comment.

The party also voted to oppose two billionaire-backed measures to undercut Prop 40.

The wealth tax has divided labor unions, drawing opposition from the California Teachers Association and other powerful groups, in part because it has complicated efforts to extend an income tax on the wealthy that funds schools — a measure that will also appear on the November ballot. SEIU-UHW has pitched its wealth tax as a way to offset federal health care funding cuts, but opponents have warned the one-time levy will have unintended consequences, including driving ultrawealthy residents and their tax dollars out of state.

“Governor Newsom, Democratic Candidate for Governor Xavier Becerra, the California Teachers Association, California Professional Firefighters, Planned Parenthood Affiliates of California, and so many others are standing together against Prop. 40 because it’s bad for our budget, bad for our economy, and bad for our future,” a spokesperson for one arm of the opposition said in a statement after the vote. “We need smart, durable solutions to our biggest challenges, not unreliable, untested schemes that shortchange healthcare, education, and public safety.”