California Governor Newsom Proposes National Billionaire Tax Amid State Ballot Debate
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Governor Gavin Newsom outlined a federal minimum tax on individuals with net worth over $100 million and a public equity fund, while opposing a California ballot measure that would levy a one-time tax on billionaires.
Governor Gavin Newsom announced a proposal for a federal tax that would require anyone with a net worth exceeding $100 million to pay at least the same effective rate as an average worker, without relying on loopholes. In a Substack post, he said the measure is intended to address growing wealth concentration and to fund a "national public equity fund" that would support worker transition benefits, universal childcare, free higher education, career training, healthcare and a national strategy for artificial intelligence.
Newsom also suggested reforms to inheritance rules, warning that the projected intergenerational transfer of wealth could entrench a permanent class of inherited wealth. He explained that he will vote against a California ballot initiative that would impose a one-time 5% tax on residents with net worth over $1 billion, citing concerns that the revenue would not be broadly distributed and could deter businesses from the state.
Supporters of the state measure have gathered more than 870,000 signatures, including backing from Senator Bernie Sanders and Representative Ro Khanna. Newsom said the state must remain competitive with other states for capital flows.
The governor's proposal comes as Democrats increasingly discuss economic policies aimed at higher-income earners, and as Newsom, who is term-limited in California, is speculated to be considering a future presidential campaign.
