A wealth tax is becoming a major issue in the 2028 Democratic primaries.

Prominent Democrats such as Rep. Alexandria Ocasio-Cortez of New York, Sen. Chris Van Hollen of Maryland, and Rep. Ro Khanna of California have embraced initiatives to increase taxes on the wealthiest Americans, Axios reported.

But moderates in the Democratic Party have argued such taxes are anti-business, legally unfeasible, and too often pitched as addressing wealth inequality rather than using the revenue to expand benefits.

California Gov. Gavin Newsom has repeatedly pushed back on wealth tax proposals in his state.

Progressives, including Khanna, have called on Newsom to support legislation for a one-time tax on Californians who earn more than $1 billion. Sen. Chris Murphy, D-Conn., a possible 2028 rival to Newsom, was in Los Angeles on Saturday to express support for the tax.

But Newsom fears a wealth tax push would hurt the state's economy and prompt its most affluent residents to move elsewhere.

The governor, a 2028 presidential contender, has not ruled out a national wealth tax.

An organization called Tax the Greedy Billionaires has been formed to highlight the issue.

Igor Volsky, the campaign director, told Axios that "candidates lining up to run in 2028" should acknowledge "extreme wealth is a crisis."

Newsom told The Bulwark this week that "a progressive tax policy should be expanded ... Texas and Florida tax low wage earners more than the wealthy ... it's about 'who are you for?'"

MoveOn, a prominent liberal organization, told Axios that it circulated polling at a meeting last week with several congressional offices that showed Democrat voters would view Newsom less favorably if they believed he opposed higher taxes on the rich.

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