Wealth Tax News – 7/31/2026

This week’s we’re watching the continued national and state-level fight over taxing concentrated wealth: California Democrats are internally divided over whether to endorse a billionaire wealth tax (Proposition 40), with intense lobbying, competing polls, and a well-funded billionaire-backed opposition facing off against labor and progressive supporters.

That fight is complicated by rifts within labor itself, questions about the tax’s legal vulnerability and potential to accelerate billionaire flight, and allegations that the measure’s architect used it partly as negotiating leverage. Parallel wealth-taxation battles are playing out elsewhere, including New York City’s confusing rollout of its new pied-à-terre tax and a broader Democratic effort to use courts and ballot-language tactics to blunt anti-tax citizen initiatives in Washington, Colorado, and California.

Please find summaries of relevant articles with web links below. Please reach out to any member of your Brownstein National Tax Policy Group team with questions or to set up a meeting.

California Wealth Tax Initiative 2026: Latest Polls – The New York Times
The New York Times has set up a page on their website tracking recent polling on the California wealth tax proposal.

Federal

Will Democrats embrace the wealth tax? – POLITICO
California Democrats are split over whether to endorse California’s wealth tax proposal at a state party meeting in San Diego. Supporters see an endorsement as a major boost and opponents warn it could backfire politically.

Platner Is Gone, But His Billionaire Tax Plan Still Matters – Forbes Op-ed
Joseph Thorndike, a Forbes contributor and tax historian, argues that Graham Platner’s failed Senate campaign still offers Democrats a lesson in tax populism. He notes that Platner paired an ambitious plan to tax billionaires and corporations with relief for working households, showing how a candidate can attack concentrated wealth without fully embracing democratic socialism. Thorndike argues Platner’s approach echoes FDR’s strategy of using progressive taxes to curb economic power while preserving capitalism, but Platner left major questions about implementation unresolved.

California

California’s proposed billionaire tax exposes rifts among labor unions – Los Angeles Times
This week, the California State Council of Laborers, California Police Chiefs Association, and United Domestic Workers, came out against Proposition 40. The groups argued it is too narrow, fiscally risky, or better handled through a longer-term funding plan. SEIU California chose to stay neutral.

Irish entrepreneur Patrick Collison donated $7m to group opposing California wealth tax – The Irish Times
Stripe CEO Patrick Collison has donated $7 million to Building a Better California, a group opposing a proposed California wealth tax proposal. The campaign, backed by several tech figures including Sergey Brin and Eric Schmidt, argues the tax threatens California’s standing as a center of innovation, good jobs, and economic opportunity.

Opinion: Why flawed wealth tax could backfire on California – San Diego Union-Tribune
Jared Walczak, a senior fellow at the Tax Foundation, argues that California’s proposed wealth tax is legally vulnerable and could backfire by prompting wealthy residents to leave before it takes effect. He says the measure’s residency and valuation dates are especially problematic, its tax would be hard to defend in court, and even if it survives, it could reduce ongoing state tax revenue by driving away billionaires rather than raising the money supporters expect.

New internal poll showing support for billionaire tax – KCRA
The Yes on Prop. 40 campaign says a new internal poll shows majority support for the California billionaire tax, with 57% favoring it and 38% opposed among 1,500 voters. Supporters are using the numbers to counter the “Stop the Squeeze” opposition campaign, which argues the tax would hurt schools, housing, and public safety. Campaign finance records cited in the article show opposition fundraising has far outpaced support for the measure.

LeBron James joins California’s billionaire exodus — but he may not escape the wealth tax – Fortune
LeBron James’s move to Philadelphia has become a high-profile example of California’s billionaire tax fight, since Proposition 40 would still tax anyone who lived in the state on Jan. 1, 2026 even if they left later.

An ‘exponentially different level’ of billionaire spending in California – Times of San Diego
California’s billionaires are spending at record levels, not just to fight the proposed wealth tax but also to shape state and federal politics around crypto, AI, and pro-business candidates. A new report says the state’s top 15 billionaires have poured more than $336 million into elections this year, with a few tech and crypto figures driving most of the money and often targeting labor-backed candidates in California races.

A powerful union, the billionaire tax and an alleged bargaining chip – Los Angeles Times
SEIU-UHW president Dave Regan pushed California’s billionaire tax as a way to raise money for healthcare, but behind-the-scenes talks suggest he may also have used it as leverage to win union contracts and other concessions.

New York

Rollout of New York City’s Second-Home Tax Is Confusing Some Residents – The New York Times
New York City’s new pied-à-terre tax has created confusion after the city published nearly one million property records and mailed notices to owners who may be affected. While officials say the rollout follows state law and is meant to target wealthy part-time residents, many homeowners say they were wrongly flagged or feel exposed. Critics argue the city’s valuation system and appeals process are cumbersome and error-prone.

Washington

Democrats Turn Against Direct Democracy – WSJ
The WSJ Editorial Board argues that Democrats and their allies are undermining direct democracy by using courts and ballot-language tactics to block anti-tax citizen initiatives in Washington, Colorado, and California. It says these moves are designed to protect the party’s ability to raise taxes and expand government spending without meaningful voter restraint.