California Democrats Back 5% Billionaire Tax After SEIU Campaign Sways Party Vote
Updated
Updated · POLITICO · Aug 3
California Democrats Back 5% Billionaire Tax After SEIU Campaign Sways Party Vote
3 articles · Updated · POLITICO · Aug 3
Summary
SEIU-UHW and allied wealth-tax backers secured California Democratic Party support after months of targeted lobbying of executive board members and delegates ahead of the San Diego vote.
Gift baskets, mail, emails, mass texts and last-minute in-person meetings helped proponents press the case that Democrats would look out of touch if they rejected a tax popular with their base.
Opponents from Planned Parenthood, the California Teachers Association and the state building trades made closing arguments in a tense resolutions committee meeting, but internal polling and a razor-thin floor vote carried supporters through.
The endorsement strengthens the campaign for Proposition 40 — a one-time 5% tax on billionaires' wealth pitched as a way to offset federal healthcare cuts before hospitals face closures — while exposing deep labor splits inside the party.
Could California's unprecedented one-time billionaire tax trigger a mass exodus, or will it successfully secure billions for struggling healthcare systems?
Will a temporary 5% wealth levy provide enough long-term stability to save California's healthcare network from catastrophic funding shortages?
How will the controversial retroactive residency clause in Proposition 40 survive inevitable constitutional challenges regarding interstate commerce and due process?