Democrats weigh business partnerships amid fight over state wealth tax

Time reports that Speaker Emerita Nancy Pelosi confidentially predicted Democrats will regain control of Congress, even as the party remains divided over its economic direction — most recently in a fight in California over a proposed state wealth tax and Governor Gavin Newsom’s vow that “Wealth taxes are going nowhere.” The piece notes that President Donald Trump’s favorability is faltering, MAGA stalwarts have begun to show dissent, and special elections have produced a ripple of victories for Democrats, yet the party could still “snatch defeat from the jaws of victory.” It argues Americans admire business success when it is earned, citing thinkers such as Thorstein Veblen and scholars Seymour Martin Lipset and Gary Wolfe Marks to explain why class-based socialism never took hold in the U.S.

The article also criticizes Trump-era moves toward state capitalism — including tariffs, greater government intervention, and stakes in private companies — and says those shifts have produced record-low approval ratings for his handling of the economy while prompting frustration among corporate leaders heard at a September CEO forum.

Looking ahead, the authors urge Democrats to decide whether to move further left — embodied by figures like New York City mayor Zohran Mamdani — or toward the center alongside governors-elect Mikie Sherrill and Abigail Spanberger.

Key Topics

Politics, Nancy Pelosi, Gavin Newsom, Donald Trump, Wealth Tax, Chips Act