Sanders and Newsom Clash Over California Billionaires Tax
LOS ANGELES (AP) — A proposed tax on billionaires in California is creating a rift within the Democratic Party, with Senator Bernie Sanders campaigning in support of the measure although Governor Gavin Newsom expresses opposition. The debate comes as national Democrats seek a unifying message ahead of the midterm elections.
Sanders Rallies Support for Wealth Tax
On Wednesday, February 18, 2026, Senator Bernie Sanders held a rally in Los Angeles to advocate for a one-time 5% tax on the assets of California billionaires, including stocks, art, businesses, and intellectual property [OC Register]. The tax is intended to backfill federal funding cuts to health services for lower-income people implemented by former President Donald Trump [ABC News].
During his nearly 30-minute speech at the Wiltern theater in Los Angeles, Sanders argued that the tax is about more than just economics, highlighting the issue of wealth inequality and the concentration of power within a “billionaire class” [OC Register]. He urged supporters to stand together and “take on the oligarchs and the billionaires” [OC Register].
Newsom Voices Opposition
Governor Gavin Newsom is a vocal opponent of the proposed tax, warning that it could destabilize state finances and harm California’s competitive position [US News & World Report]. A longtime advisor to Newsom, Brian Brokaw, stated the tax would worsen affordability issues and harm schools [ABC News].
Divisions Within the Democratic Party
The disagreement between Sanders and Newsom highlights a growing divide within the Democratic Party as they prepare for the midterm elections [MSN]. Experts note that internal conflict is particularly damaging when the party is attempting to maintain control of the House of Representatives [ABC News].
The proposal has too drawn reactions from other gubernatorial candidates. Republican candidates Chad Bianco and Steve Hilton have warned the tax could lead to job losses, while Democratic candidate Matt Mahan argues the issue originates at the federal level [ABC News].
Path to the Ballot
Supporters of the tax must gather over 870,000 petition signatures to place the measure on the November ballot [OC Register]. The contest has already attracted significant financial investment from various interest groups [OC Register]. Newsom is actively working to prevent the proposal from reaching the ballot, fearing a potential exodus of billionaires and a loss of tax revenue [ABC News].