Top Democrats join the wealthiest in fighting a California tax increase on billionaires

A first-in-the-nation proposal in California to tax billionaires could test voters' appetite for levying a wealth tax on the ultra-rich

SACRAMENTO, Calif. -- It is not just tech moguls and venture capitalists fighting a California proposal to tax the net worth of billionaires, even though they are putting up the majority of the money in one of the most expensive ballot fights in state history.

Lining up alongside them is a coalition of prominent Democratic voices and party allies like Gov. Gavin Newsom , Planned Parenthood and the California Teachers Association, as well as most Republicans. They say it will drive wealthy people — and their tax money — out of California, creating bigger budget problems in the years ahead.

They have raised more than $300 million in opposition to the measure, with nearly a third of that coming solely from Google co-founder Sergey Brin. That is roughly 10 times the amount raised by the “yes” side, which includes some labor unions, California Rep. Ro Khanna and Vermont Sen. Bernie Sanders. With much less money to spend, the “yes” campaign is relying heavily on Sanders and the attention he commands among progressives to make their case ahead of the Nov. 3 deadline to vote.

“Are we destined to live in an oligarchic society begging for crumbs while our economic and political lives are controlled by a handful of the wealthiest people on Earth?” Sanders declared at one of three recent California rallies. “Brothers and sisters, that is the question on the ballot.”

The measure, known as Proposition 40 , is not a long-term wealth tax like the one Sanders and some other progressives have long championed. It would impose a one-time, 5% tax on the wealth of Californians whose net worth exceeds $1 billion, with most of the revenue dedicated to replacing federal funding cuts to healthcare. It would be the nation’s first tax on the wealth of billionaires — targeting the main way the ultra-wealthy make their money, through their investments, rather than simply raising taxes on the paycheck they receive from work.

Voters were largely split on the measure in a September poll by the Public Policy Institute of California. About half, 52%, of likely voters said they would vote yes on the measure, while 46% said they would vote no.

With mail ballots being sent to voters, opponents are aggressively ramping up their campaign, spending or booking roughly $96 million of airtime and digital messaging, compared with just $209,000 by supporters, according to data compiled by the ad-tracker AdImpact.

A few hundred billionaires live in California, according to the nonpartisan Legislative Analyst’s Office.

Opponents are concerned the proposal is already driving wealthy people away. That could deal a blow to California’s budget because the state relies on its top 1% of earners for nearly half its personal income tax revenue.

“We’re not opposed to the concept of a wealth tax,” said Jodi Hicks, CEO of Planned Parenthood’s California chapter.