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San Francisco Democrats Vote 17-4 Against Proposition 40

8/29/2026

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Summary

Story summary

The San Francisco Democratic Party voted 17-4 to oppose Proposition 40, breaking with the state party.
Proposition 40 would impose a one-time 5% tax on about 200 California residents with net worth over $1 billion.
Supporters say the tax could raise roughly $100 billion for healthcare, education and food assistance.
Opponents, including Gov. Gavin Newsom and Xavier Becerra, argue the tax may drive billionaires out of California.

History

Historical Context

After the 1895 Pollock decision barred apportionment of income taxes, Congress passed a joint resolution in 1909 (led by Senator Nelson Aldrich) to amend the Constitution. The Sixteenth Amendment ratified on February 3 1913 enabled the Revenue Act of 1913 to levy a 1% tax on incomes above $3,000, generating $61 million that year. California’s Proposition 40 proposes a one-time 5% levy on 200 wealthiest residents, echoing that shift.

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Story summary

The San Francisco Democratic Party voted 17-4 to oppose Proposition 40, breaking with the state party.
Proposition 40 would impose a one-time 5% tax on about 200 California residents with net worth over $1 billion.
Supporters say the tax could raise roughly $100 billion for healthcare, education and food assistance.
Opponents, including Gov. Gavin Newsom and Xavier Becerra, argue the tax may drive billionaires out of California.

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