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Newsom backs national tax
California Gov. Gavin Newsom called for a national “billionaires’ tax” on Friday while reaffirming his opposition to a California ballot measure that would impose a one-time 5% tax on billionaire wealth.
“Gavin Newsom proposes national 'billionaires' tax' after opposing state's wealth tax initiative Newsom's proposal comes as he says he's considering a run for president”
Newsom’s proposal would set a minimum tax on anyone with a net worth of more than $100 million, and he said it should ensure “the people at the very top pay at least the tax rate their own workers’ pay.”
In the same Substack push, Newsom also argued for rewriting inheritance rules, warning that “Over the next twenty years, this country will live through the largest intergenerational wealth transfer in human history, with roughly $124 trillion changing hands.”
Newsom tied the agenda to artificial intelligence, saying he wants a national public equity fund so “every American should own a piece of the future it builds,” and he framed the effort as an “economic reset for America.”
California vote and pushback
Newsom’s national pitch came after California’s own billionaire tax measure qualified for the November ballot, with the governor saying he is “voting no” and that he will “spend the rest of this piece telling you why.”
In explaining his opposition, Newsom said the California measure would dedicate almost all of the revenue to just state-funded healthcare services, and he argued it “ignores our public schools.”
The state-level fight is backed by SEIU-UHW, and ABC News reported that SEIU-UHW Vice President Debru Carthan said, “The billionaire tax will be on the November ballot,” and “And we intend to win.”
ABC News also reported that the Building a Better California nonprofit supporting competing ballot initiatives has raised more than $118 million, including $80 million from Google co-founder Sergey Brin, as the billionaire tax debate intensifies.
What’s at stake next
Newsom’s federal agenda also calls for ending what he calls “tax-free lifestyle loans,” and he said the fight belongs at the federal level “where this broken system was created in the first place.”
In the California context, Newsom warned that “billionaires can, and do” relocate to states like Texas or Florida to shelter income from taxation, and he argued the fight over taxing the ultrawealthy should not be undertaken by a state.
The Hill reported that Newsom’s proposal includes a “true minimum tax on billionaires and those with a net worth of $100 million” and a national public equity fund, while it also noted his opposition to the California Billionaire Tax Act’s one-time 5% tax on residents with a net worth greater than $1 billion.
As the political stakes build around a potential 2028 run, Newsom’s pitch places him in the Democratic debate over AI and economic insecurity, and CBS News said his proposals are aimed at funding transitions for workers displaced by AI alongside universal child care, tuition-free higher education, career training, and health care.
