California’s proposed billionaire tax cleared a major political hurdle on Sunday after winning the endorsement of the California Democratic Party.
The endorsement provides fresh momentum to the initiative just months before voters decide the measure at the ballot box.
The proposal secured the 60 percent threshold required for the party’s endorsement during a meeting of hundreds of Democrat officials in San Diego.
The approval came despite fierce opposition from some of the state’s most prominent Democrats.
If endorsed by voters in November, the measure would impose a one-time 5 percent tax on Californians with a net worth of at least $1 billion, affecting roughly 200 of the state’s wealthiest residents.
The endorsement is a significant victory for supporters after months of infighting within the Democratic Party.
California Gov. Gavin Newsom and Democratic gubernatorial candidate Xavier Becerra have both publicly opposed the proposal, warning it could encourage wealthy taxpayers to leave the state.
The initiative was placed on the ballot by the Service Employees International Union United Healthcare Workers West (SEIU-UHW), which claims the tax will raise an estimated $100 billion.
The money will be primarily used to offset healthcare funding reductions enacted by the Trump administration.
“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-UHW.
The measure has drawn support from far-left Democrats, including Sen. Bernie Sanders and Rep. Ro Khanna, who argue California’s wealthiest residents should contribute more to fund healthcare programs.
California has already lost 30% of the targeted billionaire tax base before the effective residency date.
Just like it drove TV and movie production out of the state, it’s now doing the same with tech. https://t.co/wyaCYLlnWY
— Katie Miller (@KatieMiller) August 3, 2026
The California Teachers Association, California Professional Firefighters and several billionaire donors have also lined up against the proposal, arguing it would damage the state’s economy and investment climate.
According to the Wall Street Journal, both supporters and opponents mounted aggressive lobbying campaigns ahead of the weekend vote.
The union behind the initiative hosted hospitality events and distributed promotional merchandise to party officials, while opponents reportedly helped cover hotel rooms, registration fees and travel expenses for several executive board members attending the meeting.
Following the endorsement vote, a spokesman for the opposition campaign reiterated its objections, calling the proposal “bad for our budget, bad for our economy and bad for our future.”
The tax would apply to individuals who were California residents on January 1, 2026, and whose net worth reaches at least $1 billion by the end of the year, with certain assets, including directly owned real estate, excluded from the calculation.
Many billionaires have already threatened to leave should the measure ultimately pass, wreaking further damage on the economy of America’s largest state.
California’s ‘Billionaire Tax’ Could Reach Far Beyond Billionaires
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