California Proposition 40 billionaire tax receives Communist Party endorsement

The California arm of the Communist Party USA has officially endorsed Proposition 40, a proposed one-time 5% tax on the state’s approximately 200 billionaires. The measure, sponsored by SEIU-United Healthcare Workers West, aims to generate roughly $100 billion in revenue. Proponents intend to earmark 90% of these funds for healthcare, with the remaining portion allocated to K-12 education and food assistance.

The endorsement highlights a growing political divide in California. While the Communist Party and organized labor support the tax to fund essential services, Governor Gavin Newsom and Democratic gubernatorial frontrunner Xavier Becerra oppose it. Newsom has cautioned that the tax could lead to a loss of revenue if wealthy residents and their companies relocate to other states to avoid the levy.