California Democratic Party executive board endorses Proposition 40, a proposed 5% levy on billionaire net worth

California Democrats advanced a major tax proposal this weekend after members of the California Democratic Party’s executive board voted to endorse Proposition 40, according to a report from Zero Hedge. The endorsement was made at a waterside Sheraton in San Diego during a meeting described as drawing roughly 380 members.

The vote cleared what the report characterizes as a 60% supermajority threshold required for executive board endorsements. The report says the group’s approval sends the measure forward for consideration in the state ballot process, following internal party action by the state party’s governing body.

Proposition 40 is described in the report as a “one-time” 5% levy on the net worth of California’s estimated population of billionaires. The report frames the affected group as about 200 individuals, with the tax calculated using each person’s net worth rather than only annual income.

The report characterizes the executive board’s vote as reflecting unity among California Democrats, describing the mood and messaging around the endorsement as “They Are United.” It also describes the proposal as likely to be a contentious issue for political and financial stakeholders because it targets wealth rather than wages or business revenue.

While the report focuses on the party endorsement vote, it does not provide details on other procedural steps required for a ballot measure to move forward, such as qualification deadlines, final legislative or ballot-form requirements, or how the proposal would be administered by state agencies. It also does not provide figures for projected revenue, enforcement mechanisms, exemptions, or how the “one-time” nature of the levy would be implemented.

If Proposition 40 ultimately reaches the ballot, the practical effect for California taxpayers would hinge on how the tax is defined, how net worth is valued, what documentation is required, and how disputes are handled. Because the proposal is framed as applying to the net worth of high-wealth individuals, it would also raise questions about valuation standards and due-process procedures for taxpayers who contest assessments, as well as how the state would audit and enforce compliance.