Wealth Tax News – 8/8/2026

California’s proposed billionaire wealth tax (Proposition 40) dominates this week’s news cycle, with the California Democratic Party narrowly endorsing it after intense behind-the-scenes lobbying by SEIU-UHW and a pivotal appearance by Rep. Maxine Waters, even as Gov. Newsom, the California Teachers Association, and other prominent Democrats oppose it in favor of alternative tax approaches.

The battle has already raised $140 million in campaign funds. Beyond California, New York’s Mayor Mamdani is facing backlash over a messy rollout of a pied-à-terre tax on luxury second homes, Maine has enacted a 2% millionaire surtax that supporters say will stabilize the workforce, and Washington voters will decide in November whether to repeal the state’s new 9.9% tax on incomes over $1 million.

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.

California

California Democratic Party endorses billionaire tax – POLITICO; How wealth tax backers won over California Democrats – POLITICO
Supporters of California’s wealth tax (Proposition 40) spent months organizing behind the scenes to win the California Democratic Party’s endorsement, culminating in an appearance by Rep. Maxine Waters (D-CA) at the party’s executive board meeting, where she cast one of the deciding votes. SEIU‑UHW and allied backers lobbied board members and delegates via mail, gift baskets, emails, texts, in‑person meetings, and a reception before the vote, arguing that Democrats shouldn’t be scared to tax billionaires and presenting internal polling showing strong support among Democratic voters. Opponents, including Planned Parenthood, the California Teachers Association, and the Building Trades, made their case but narrowly lost. The initial floor vote failed to reach the 60% threshold, but a re‑vote following Waters’ arrival cleared the margin by less than two percentage points. The endorsement gives the Prop 40 campaign access to state party infrastructure and a credibility boost as SEIU‑UHW seeks further county party endorsements and a broader progressive coalition, though the article notes that party endorsements don’t always translate into electoral success.

Khanna says billionaires scared Democrats off wealth tax – POLITICO
Rep. Ro Khanna (D-CA) describes how he was the lone supporter in California’s congressional delegation of a proposed state wealth tax for a long time. He argues that other Democrats were scared off by a Silicon Valley–backed effort to primary him and by threats from major donors who urged him to retreat and warned his stance could end his career. Although Rep. Khanna beat his challenger handily and recent endorsements from Rep. Maxine Waters, the California Democratic Party, and the California Federation of Labor Unions have strengthened the campaign for Proposition 40, he notes that most prominent Democrats still avoid backing the proposal.

California Democrats Want to Tax Billionaires. They Can’t Agree on How. – The New York Times
California Democratic Party’s executive board narrowly endorsed Proposition 40 after a three‑day debate that exposed deep divisions among Democrats over how to tax the rich. Backed primarily by SEIU‑UHW as a way to restore Medicaid funding, the measure pits health care workers and their union against other progressive groups and unions, like the California Teachers Association and Planned Parenthood, which favor a separate permanent income tax on high earners (Proposition 3) and worry the wealth tax is short‑term, divisive, and could drive entrepreneurs out of the state. California’s fight within a broader national struggle over wealth inequality and Democratic tax strategy, noting that Gov. Newsom and other moderates prefer more conventional tools such as income, capital gains, and estate tax hikes, while Rep. Khanna and progressive populists frame the wealth tax as a defining test of whether the party stands with donors or the working class Americans.

California Democrats Run Over Newsom on the Wealth Tax – WSJ
The Wall Street Journal Editorial Board argues that if the billionaire tax proposal passes, it will accelerate the Democratic Party’s shift toward wealth taxation nationally, potentially making a wealth tax a 2028 platform plank. The Board suggests Gov. Newsom’s attempt to balance his opposition to the state measure with support for a national wealth tax may still leave him politically vulnerable within his party.

Billionaire-tax battle costing a fortune – SF Examiner
California’s battle over the wealth tax proposal, and the competing ballot initiatives have already raised $140 million, making it one of the state’s costliest ballot-measure fights. SEIU‑UHW has raised $31.4 million to support Prop. 40, arguing the revenue would primarily fund healthcare and prevent coverage losses and layoffs. Billionaire-backed opponents have raised $108.8 million, largely through Sergey Brin’s Building a Better California, to defeat it and advance measures that would limit new taxes and effectively block wealth taxes.

Momentum Grows For Billionaire Wealth Tax in California – Newsweek
California’s wealth tax proposal has gained momentum through endorsements from the California Democratic Party and the California Nurses Association, joining support from SEIU‑UHW, Bernie Sanders, Ro Khanna, and other labor and advocacy groups. Polling shows 54% of likely voters support it ahead of the November 3 vote.

New York

Mamdani Pied-à-Terre Tax Rollout is Unsettling New York City Elites | Real Estate for August 5 – WSJ
Mayor Mamdani’s new pied-à-terre tax on second homes worth $5 million or more is unsettling the city’s wealthy residents, especially after the administration published a broad public list of properties that could be subject to the tax. The rollout has been bumpy: homeowners are receiving notices that they may owe the tax and some long-time primary residents say they are being wrongly targeted and face a burdensome process to prove their homes shouldn’t be taxed.

Maine

Millionaire tax is good for Maine businesses, good for Maine – Portland Press Herald
Nate Barr, a Maine manufacturing business owner, argues that the state’s new millionaire tax will help businesses by funding childcare, housing, education, and other supports that allow workers to remain employed and reduce turnover. The 2% surtax applies only to income above $1 million for individuals and $1.5 million for joint filers, not to total business revenue. He argued that it will affect few small-business owners. In his view, the estimated $75 million in annual revenue will support a more stable workforce and healthier state economy.

Washington

Washington primary offers early clues on millionaires tax repeal fight – KOMO TV
Washington voters will decide in November whether to repeal the state’s new 9.9% tax on incomes over $1 million through Initiative 645, which would also prohibit future state and local income taxes. While the primary election showed that many lawmakers who supported the tax performed well, the tax was not directly before voters and that the November electorate may differ.