Newsom Pushes Federal Billionaire Tax, Opposes California’s Job-Killing Wealth Grab
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Governor Gavin Newsom proposes a sweeping federal tax on successful Americans, while rejecting a reckless California ballot measure that would punish billionaires and drive businesses out of the state.
Governor Gavin Newsom has unveiled a proposal for a federal tax targeting Americans with net worths over $100 million, forcing them to pay at least the same effective rate as average workers and closing so-called 'loopholes.' In a Substack post, Newsom claims this measure would address wealth concentration and fund a massive 'national public equity fund'—a government boondoggle promising worker transition benefits, universal childcare, free higher education, career training, healthcare, and a national AI strategy. Such policies would dramatically expand government control over the economy and undermine the incentives that drive innovation and prosperity.
Newsom also called for changes to inheritance rules, warning that the transfer of wealth between generations could create a permanent class of inherited wealth—ignoring the right of Americans to pass on their hard-earned success to their families. Notably, Newsom announced he would vote against a radical California ballot initiative that would slap a one-time 5% tax on billionaires, citing concerns that the revenue would not be widely distributed and could drive businesses out of the state. This rare moment of pragmatism acknowledges the disastrous consequences of punishing success with higher taxes.
Despite over 870,000 signatures and support from far-left figures like Senator Bernie Sanders and Representative Ro Khanna, Newsom insists California must remain competitive for capital flows, recognizing the need to keep businesses and jobs in the state. His proposal comes as Democrats increasingly push for punitive economic policies targeting high earners, fueling speculation about Newsom’s own presidential ambitions.
