(KMJ) The California Democratic Party is backing a controversial ballot measure that would impose a one-time wealth tax on the state’s billionaires.
The party’s executive board voted in favor of backing the proposal on Sunday.
Under the proposal, individuals with a net worth of one billion dollars or more could face a tax of up to 5% on their wealth.
Supporters argue the measure would generate billions of dollars for state programs and help address income inequality.
Critics say the tax could drive more wealthy residents and businesses out of California, hurting the economy and reducing future tax revenue.
Governor Gavin Newsom is not backing the statewide measure, but is rather pushing a nationwide wealth tax as he gears up for a likely run for President.
Both gubernatorial candidates, Republican Steve Hilton and Democrat Xavier Becerra have announced they are not supporting the measure.
