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WSJ: How the Proposed California Billionaire Tax Became a ‘Hot Mess’ for Democrats

Local unions and rank-and-file members are backing the billionaire tax as statewide labor leaders warn it could drive wealth out of California.

  • Proposition 40 has exposed deep divisions within California labor unions, with local chapters recently defying their statewide leaders to endorse the proposed billionaire tax as the November 3 election approaches.
  • SEIU-United Healthcare Workers West projects the measure would raise roughly $100 billion over five years to offset federal healthcare cuts, though opponents cite a Stanford University study estimating a $39 billion loss in tax revenue due to billionaire flight.
  • Defying statewide California Teachers Association and California Building Trades leadership, rebelling locals including United Teachers Los Angeles, representing about 35,000 members, and the San Diego Building Trades Council have endorsed the proposal.
  • While statewide leader Chris Hannan of the California Building Trades opposes the tax, political organizer Alex Schmaus of the United Educators of San Francisco calls the union stance "an error" that ignores rank-and-file demands.
  • A recent Citrin-POLITICO poll shows voters are closely split on the measure, with 46% in favor and 43% opposed, indicating that local union member support could prove crucial before Election Day on November 3.
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  • 80% of the sources are Center
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Wall Street Journal broke the news in New York, United States on Monday, October 26, 2026.
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