00:00It's Benzinga, bringing Wall Street to Main Street.
00:02The California Democratic Party endorsed Proposition 40, a November ballot measure
00:07that would impose a one-time 5% tax on billionaire wealth, overcoming opposition from Governor
00:13Gavin Newsom and several major labor unions.
00:16The party also posed two billionaire-backed measures aimed at weakening the proposal.
00:21Supporters secured the required 60% backing after initially falling short.
00:26The union behind the proposed 5% billionaire tax called the endorsement evidence of growing
00:32grassroots Democratic support.
00:34The measure would fund health care, food aid, and budget gaps, though its retroactive provisions
00:39are expected to face legal challenges.
00:41Newsom opposes California's billionaire wealth tax, but supports a federal minimum tax on
00:46Americans with more than $100 million in assets, arguing a nationwide levy would be harder to
00:52avoid through relocation.
00:54The proposal has divided Silicon Valley, as some billionaires say they will stay and
00:58pay the tax while others have already left California or are considering relocation ahead
01:03of the November vote.
01:04For all things money, visit Benzinga.com.
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