SEIU California, one of the most powerful political forces in the state, voted last week to take a neutral position on Proposition 40, the proposed "Billionaires' Wealth Tax."
Prop 40 would impose a one-time 5% tax on billionaires’ assets. SEIU United Healthcare Workers proposed the tax, without initial support from other SEIU unions.
But this move by SEIU California to stay neutral is the latest example of how divided organized labor is over the tax.
The umbrella organization is instead backing an effort to tax corporations whose employees make little enough to qualify for Medicaid and other public benefits.
Governor Gavin Newsom signed a bill earlier this summer that would require the Department of Finance to present options for doing so next year.
SEIU California represents 750,000 members and 17 local unions.