California's wealth tax proposition, known as Proposition 40, is creating divisions among Democrats as the election approaches. Polls indicate a lack of majority support, with some leaders, including Governor Gavin Newsom, opposing it due to concerns about billionaires leaving the state. Economists estimate that seven billionaires have already moved out, taking with them around $540 billion in taxable income, which has implications for the state's finances.
Key facts
- Proposition 40 is polling at 32.5% support and 52.6% opposition.
- Seven billionaires have relocated from California, taking $540 billion in taxable income.
- Projected revenue from the wealth tax has dropped from $100 billion to $30 billion.
- Governor Gavin Newsom opposes Proposition 40, while Rep. Ro Khanna supports it.
- The California Democratic Party has endorsed Proposition 40 despite internal opposition.
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