A proposal to raise taxes on the wealthiest Californians has sharply divided Democrats in the biggest blue state in the country — and is poised to set up a broader debate for the party heading into the next presidential contest.
Clear battle lines have formed in recent weeks among the sprawling field of Democratic candidates in California’s open governor’s race this year, as well as among potential 2028 White House contenders in the state, over a “billionaire tax” that could appear before voters in the fall.
On one side, California Gov. Gavin Newsom, widely seen as a presidential hopeful, has lined up in opposition to the proposed ballot measure. So, too, have a handful of Democrats who are trying to succeed him as governor, including former Rep. Katie Porter, former Los Angeles Mayor Antonio Villaraigosa and former U.S. Health Secretary Xavier Becerra. They’ve argued the initiative would drive wealthy investors and tech leaders from the state.
On the other, Rep. Ro Khanna, who has his eye on a future White House bid, and billionaire gubernatorial candidate Tom Steyer have backed the effort, arguing that it would help close income inequality gaps.