Governor Newsom Champions National Billionaire Tax, Rejects Weak State Measure
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Governor Gavin Newsom calls for a robust federal tax on the ultra-wealthy and a public equity fund to address systemic inequality, while criticizing a California ballot measure as insufficient and business-friendly.
Governor Gavin Newsom has taken a bold step by proposing a federal tax that would finally require the ultra-rich—those with net worths exceeding $100 million—to pay at least the same effective tax rate as ordinary workers, closing the loopholes that have long allowed billionaires to hoard wealth at the expense of the many. In a Substack post, Newsom made it clear that this measure is a direct response to the obscene concentration of wealth in the hands of a few, and would fund a transformative 'national public equity fund' to provide worker transition benefits, universal childcare, free higher education, career training, healthcare, and a national artificial intelligence strategy—policies that would uplift working families and challenge the entrenched power of the billionaire class.
Newsom also called for reforms to inheritance rules, warning that the looming intergenerational transfer of wealth threatens to cement a permanent aristocracy of inherited privilege. In a disappointing move, however, Newsom announced he would vote against a California ballot initiative that would impose a one-time 5% tax on billionaires, arguing that the revenue would not be broadly distributed and could scare off businesses—a rationale that echoes corporate talking points and fails to confront the urgent need for wealth redistribution.
Despite over 870,000 signatures in support of the state measure, and endorsements from progressive champions like Senator Bernie Sanders and Representative Ro Khanna, Newsom insists that California must remain 'competitive' for capital flows, prioritizing the interests of the wealthy over the needs of the people. Newsom’s proposal comes amid growing calls within the Democratic Party for policies that finally make the rich pay their fair share, as speculation mounts about his own presidential ambitions.
