San Francisco Dems, in unprecedented move, could break with state party to oppose billionaire tax
The California Democratic Party narrowly voted in early August to support the upcoming billionaire wealth tax. San Francisco’s local party chapter appears poised to buck that choice: It is taking unprecedented action to independently consider whether to oppose the measure next Wednesday.
The tax, or Prop. 40, would impose a one-time 5 percent levy on roughly 200 billionaires in California. It would use the money raised to fund Medi-Cal, which will face an estimated $30 billion shortfall per year once federal tax cuts go into effect on Jan. 1.
In the past, the San Francisco Democratic County Central Committee (DCCC), the county Democratic Party, would not have been able to break from the state party’s endorsement on California ballot measures. “By our bylaw, we cannot endorse state propositions, it’s the role of the California Democratic Party,” read the party’s endorsement page in 2020.
But this year, on June 24, a week after Prop. 40 qualified for the ballot, the local party voted to change its bylaws. Now the San Francisco Democratic Party is able to diverge from the state Democratic Party on endorsements of state ballot measures.
The change gives the committee “the power to take a position” when a measure “really does not align with our values,” Mike Chen, a member who sponsored the amendment in June, said ahead of the vote. The Los Angeles County Democratic Party also has the power to make separate endorsements, Chen added.
At that meeting, Michael Nguyen, another DCCC member, asked if anything on the November ballot had prompted the change. Chen replied that he did not have a specific measure in mind when drafting the amendment.
As of Thursday, Prop. 40 is the only state ballot measure that the San Francisco DCCC is considering in its endorsement process, according to its agenda.
“The only reason to bring it up is that they object to it,” said Kim Tavaglione, the executive director of the San Francisco Labor Council. “Clearly they do.”
David Campos, the former Mission District supervisor and vice chair of the state Democratic Party, agreed. “If you’re happy with where the state is” on Prop. 40, he said, “then there’s no reason to put it on the agenda.”
Nancy Tung, the San Francisco democratic party chair who opposes the measure, said in a statement that the party is considering Prop. 40 locally “because the endorsement process at the state executive board meeting was very split, and because of the strong position against held by respected groups like Planned Parenthood and the California Professional Firefighters.”
Prop. 40 has picked up its fair share of opposition among Democrats. Gov. Gavin Newsom and his likely successor, Xavier Becerra both oppose the measure. So does Mayor Daniel Lurie, who told San Francisco Business Times in January that it would drive revenue out of California.
The San Francisco DCCC can spend funds promoting its preferred candidates and causes, and do so handsomely: It had $556,120 in the bank as of June 30.
The local DCCC has undergone a shift in recent years. The majority slate of its current elected members were supported in their 2024 election by tech-backed political action committees, and lean moderate and pro-business. They took over after eight years of progressive control of the party.
The DCCC also voted in March to oppose Prop. D, the San Francisco “Overpaid CEO tax” in the June election. Opposed by Lurie and a barrage of spending, it subsequently lost.
Party members and organizers say that while it is too early to say definitively, it is likely the DCCC will vote to oppose the billionaire tax. Progressives on the body are discussing their options, Nguyen said. “But we have no votes to stop it.”
Voting to oppose the tax would be “a complete change from the party’s practice,” said Peter Gallotta, a progressive member of the San Francisco DCCC since 2017. “It’s important that there is a one-voice rule where as Democrats we stand together and unite around the state party’s decision and its process around these decisions.”
Having the state party taking one position on the billionaire tax, and the local party potentially taking another, Gallotta argued, could be confusing to voters.
“People already find it hard to understand where the Democratic Party is on key issues that affect their lives,” he added. “This is not the time to create more confusion.”
Tung, the DCCC chair, disagreed. “I don’t think it will cause confusion any more than seeing opposing views play out during the election,” she wrote. “It’s important for us to have rigorous debate on issues of statewide significance.”
Local chapters are not breaking rules by having separate ballot measure positions, said Campos. The state party’s bylaws only prohibit local chapters from diverging on candidate endorsements.
But no other local party has taken up the issue, Campos added.
Much of the San Francisco DCCC’s power lies in its ability to make endorsements. Voters are “looking for information from a trusted source, and there’s no more trusted source in San Francisco politics than the Democratic Party,” said Jim Ross, a political consultant with decades of experience in local politics, during the 2024 election.
If the local party votes to oppose Prop. 40, it could unlock a war chest from wealthy donors — many of them billionaires — who are already giving millions of dollars to defeat the measure. Among them are tech titans who have already bankrolled candidates and ballot measures in recent San Francisco elections, like crypto billionaire Chris Larsen, venture capitalist Michael Moritz, Y Combinator CEO Garry Tan and tech financier Ron Conway.
Plus, taking a position against Prop. 40 could unlock vast sums from the state groups fighting the billionaire tax, which the local party could then spend on slate cards promoting other, unrelated candidates. Those groups have spent tens of millions to fight the measure already.
“The S.F. DCCC slate card and political program would have a shit ton of money from the ‘No on Prop. 40’ committees,” said Gordon Mar, a progressive member of the local party.
Meanwhile, the “No on Prop. 40” statewide campaign would also gain: It could advertise that the San Francisco Democratic Party, a supposed bastion of liberalism, has come out against the measure. “It’s an arrow in their bow that they can then utilize and put in the mail pieces across the state,” Gallotta said.
Prop. 40 has a narrow lead in a recent poll conducted by UC Berkeley’s IGS Poll, but is below the 50 percent threshold needed: 48 percent of likely voters supported it in the poll, and 41 percent opposed. Divisions were along party lines.
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Junyao YangStaff Reporter
Junyao covers San Francisco’s Westside, from the Richmond to the Sunset. She joined Mission Local in 2023 as a California Local News Fellow, after receiving her Master’s degree from UC Berkeley Graduate School of Journalism. Junyao lives in the Inner Sunset. You can find her skating at Golden Gate Park or getting a scoop at Hometown Creamery.More by Junyao Yang
