California wealth tax heads to ballot as Democratic rift widens

A proposed one-time 5% wealth tax on California billionaires’ assets survived qualification for the November ballot, pitting labor-backed advocates led by SEIU-UHW against Gov. Newsom and Silicon Valley billionaires. Supporters say the levy would offset federal spending cuts and protect essential services, while opponents warn it would hurt California’s economy and drive the ultra-wealthy to relocate. The campaign is expected to be extraordinarily expensive and will test Democratic attitudes toward wealth taxes ahead of the 2028 primaries.