Centrists Are Still Defending California Billionaires

California Democrats just defied Gavin Newsom to endorse a billionaire wealth tax. The fight previews a national battle in which centrists push “pragmatic” alternatives that would barely make a dent in ultra-elites’ wealth or power.

Gavin Newsom speaks during a press conference in Oakland, California, on July 13, 2026.

Gavin Newsom fought to kill California’s billionaire wealth tax, despite branding himself as a populist. His alternative proposals would barely touch billionaire fortunes — a preview of how centrist Democrats will dodge the tax fight ahead of 2028. (Tayfun Coskun / Anadolu via Getty Images)


When California Democrats met last week for the party’s executive board meeting, the question on everyone’s mind was whether they would back Proposition 40, the onetime billionaire wealth tax that has split the party in recent months. With some of the most powerful Democrats in the state opposing the measure — including Gov. Gavin Newsom and his likely successor, Xavier Becerra — it was far from certain whether the board would support it. When it came to the floor for a vote, it fell just short of the 60 percent threshold required for endorsement. It was only after a second vote, along with a decisive show of support from veteran Rep. Maxine Waters, that the board narrowly endorsed the measure with 61.7 percent backing.

The party’s endorsement gave Prop 40 a much-needed boost in the face of a billionaire-backed opposition that has already raised nearly $120 million and recently launched an $87 million ad blitz. It also defied the wishes of top California Democrats and underscored a widening rift between the party’s centrist leadership and its rank-and-file members. By endorsing the measure, the California Democratic Party aligned itself with the party’s base, which overwhelmingly backs the proposal in the polls.

“Individual Democratic leaders may or may not have their own opinions but Voting Yes on Prop 40 is the official Democratic Party position,” said Will Rodriguez-Kennedy, chair of the San Diego County Democratic Party. This vote, he added, “indicates that the Democratic Party will take on the most powerful people out there to save Californian lives from the cruel healthcare cuts enacted by the Trump administration.”

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