Democrats split over California billionaire tax proposal

Summarised from 2 outlets · Updated 9 Oct, 16:07 · Archive

California's Proposition 40 would tax billionaires' net worth, dividing Democrats and drawing record spending.

California's Proposition 40 would levy a tax on the net worth of billionaires, representing a first-in-the-nation proposal for such a measure. The ballot initiative has created an unusual coalition of opponents that spans both wealth and political establishment, including tech moguls, venture capitalists, Governor Gavin Newsom, Planned Parenthood and the California Teachers Association, as well as most Republicans.

Opponents have raised more than $300 million in opposition, with nearly a third of that funding coming solely from Google co-founder Sergey Brin. They argue the tax will drive wealthy individuals and their tax revenue out of California, creating larger budget deficits in future years.

Supporters include some labour unions, California Representative Ro Khanna and Vermont Senator Bernie Sanders, who has campaigned at three California rallies ahead of the 3 November voting deadline. Sanders framed the choice starkly, asking whether Americans are 'destined to live in an oligarchic society' controlled by the ultra-wealthy. The 'yes' side has raised approximately one-tenth of the opposition's funding, relying heavily on Sanders' appeal to progressives to build support.

How it is being reported

• Top Democrats join the wealthiest in fighting a California tax increase on billionairesA first-in-the-nation proposal in California to tax billionaires could test voters' appetite for levying a wealth tax on the ultra-rich.Clickorlando · 9 Oct, 15:29
• Top Democrats join the wealthiest in fighting a California tax increase on billionairesA first-in-the-nation proposal in California to tax billionaires could test voters' appetite for levying a wealth tax on the ultra-rich.News4Jax · 9 Oct, 15:29

In this story: California · Gavin Newsom · Bernie Sanders · Sergey Brin · Ro Khanna · Planned Parenthood · California Teachers Association · Google

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem