California Governor Newsom Opposes Billionaire Wealth Tax Amid Speculation About 2028 Presidential Ambitions

Governor Gavin Newsom said he opposes Proposition 40, a ballot measure that would levy a one-time 5% tax on the wealth of roughly 200 California billionaires to fund Medicaid shortfalls. He argued the tax should be enacted at the national level to avoid driving wealthy individuals and businesses out of the state and warned it could hurt California’s budget.

The proposal, backed by a healthcare union, aims to raise funds to replace deep federal cuts to Medicaid, which serves about 15 million Californians. Labor leader Lorena Gonzalez, president of the California Federation of Labor Unions, criticized officials who fear the billionaire class, saying they are “so afraid of this billionaire class.”

Political analysts suggest Newsom’s opposition may be strategic. Saikat Chakrabarti, co-founder of the progressive think tank New Consensus, said the governor’s stance aligns with his anticipated 2028 presidential run, noting that he “needs those billionaires on his side.” Political science professor Fernando Guerra added that the governor’s position could help him appear more centrist to Democratic primary voters.

Supporters of the tax, including the California Teachers Association and other unions, argue the measure would address inequality. However, several high-profile California Democrats, such as former Vice President Kamala Harris and former House Speaker Nancy Pelosi, have remained silent.

Billionaire tech founders have publicly opposed the tax. Chris Larsen, who has donated over $12 million against Proposition 40, praised California’s tech sector on a KQED podcast, while Meta recently offered CEO Mark Zuckerberg a new class of non-voting shares to mitigate a potential tax bill. The “Yes on Prop. 40” campaign has launched TV and digital ads targeting Newsom in early presidential primary states, though it is outspent in California.

SEIU-UHW West president Dave Regan, the architect of the billionaire tax, described the debate as a “campaign problem” for Newsom rather than a healthcare issue, emphasizing the disconnect between the governor and the billionaire donors opposing the measure.