Left pushes wealth tax as litmus test for 2028 Dems
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Left-wing activists are demanding that prospective 2028 presidential contenders embrace a wealth tax — a move that many mainstream Democrats say is ill-advised.
Why it matters: On one side, potential White House hopefuls such as New York Rep. Alexandria Ocasio-Cortez, Maryland Sen. Chris Van Hollen and California Rep. Ro Khanna have endorsed wealth taxes.
- On the other, moderates argue that such taxes are anti-business, legally unfeasible and too often pitched as addressing wealth inequality rather than using the revenue to expand benefits.
Zoom in: California Gov. Gavin Newsom is in the crosshairs of this fight. He's opposed to a wealth tax in his state but has left the door open to a national wealth tax.
- Left-wing activists have been pressuring the governor to embrace a proposal for a one-time 5% tax on Californians worth more than $1 billion.
- He's vowed to stop the proposal because he fears it would drive away the wealthy and hurt the state's economy.
- Connecticut Sen. Chris Murphy, a possible 2028 rival, traveled to Los Angeles on Saturday to show support for a wealth tax in Newsom's state.
Tax the Greedy Billionaires, a campaign backed by MoveOn and other liberal activists, told Axios it circulated polling at a meeting last week with several congressional offices indicating that most Democratic voters would view Newsom less favorably if they thought he opposed higher taxes on the rich.
- The group also is making a small digital ad buy attacking Newsom and planning talks with other 2028 contenders to push wealth taxes and similar policies.
- Newsom has long disputed the idea that he doesn't support making the wealthy pay more, pointing to California's progressive tax system.
What they're saying: Igor Volsky, campaign director of Tax the Greedy Billionaires, said that "candidates lining up to run in 2028" should understand that "extreme wealth is a crisis."
- Tré Easton of the center-left think tank Searchlight Institute said that a national wealth tax "would have some problems passing constitutional muster."
The other side: Asked for comment, a Newsom spokesperson shared the governor's comments this week to The Bulwark, in which he said "a progressive tax policy should be expanded to the rest of the country."
