The San Francisco Democratic Party voted overwhelmingly to oppose Proposition 40: 17 of the 22 committee members present rejected the one-time billionaire wealth tax.
That vote broke with the California Democratic Party, which endorsed Proposition 40 earlier in August.
Under the official fiscal analysis, Proposition 40 would tax up to 5% of covered wealth belonging to people who were California residents on January 1, 2026. Analysts project "tens of billions of dollars" in temporary revenue, but warn that out-migration and behavioral changes could reduce ongoing income-tax revenue by less than $1 billion annually.
GrowSF has already warned that a one-time asset seizure could weaken California’s economy and future tax base.
We're glad that the local Democratic party rejected the state party's position. A one-time windfall does not justify telling founders and investors that California may confiscate part of their companies whenever Sacramento wants cash. That warning would outlast the revenue.
Voters should reject Proposition 40 in November.
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