The California Democratic Party (CADEM) officially announced its support for a proposed ballot initiative aimed at taxing the state’s ultra-wealthy residents. The measure, referred to as Proposition 40, seeks to levy a one-time five-percent tax on the net worth of approximately 200 billionaires living in California. The decision followed a narrow vote by the party’s executive board, highlighting a significant divide among state Democrats regarding fiscal policy and wealth redistribution.

While the party leadership has moved to back the initiative, the proposal has encountered resistance from prominent party members. Most notably, Governor Gavin Newsom has expressed opposition to the measure. The internal friction underscores a broader debate within the party about how to address state budget concerns and wealth inequality. Proponents of the tax argue it is a necessary step to fund public services and address the concentration of wealth, while critics—including those within the Democratic establishment—have raised concerns about the potential economic implications and the feasibility of such a tax structure. The narrow margin of the board's vote suggests that the party remains deeply split on whether this specific tax strategy aligns with the state's broader economic goals.