Californian wealth tax roils the Democratic coalition

A proposed one-time wealth tax on California billionaires is squeezing the state’s Democratic coalition, straining unions and top donors while pitting Gov. Gavin Newsom against the measure. Some prominent Democrats and labor leaders back the idea as a tool to curb inequality, while others fear economic disruption and political backlash that could affect national and 2028 races. The proposal faces signature collection for the November ballot amid warnings of capital flight and revenue shortfalls, underscoring a high-stakes fight over how far the party should go to tax the ultra-wealthy.