California Governor Urges End to “Buy, Borrow, Die” Tax Loophole

California Governor Gavin Newsom urged state legislators to close the “buy, borrow, die” wealth-tax loophole. He said the loophole lets wealthy investors avoid capital-gains taxes by borrowing against appreciated assets and passing them to heirs at a stepped-up basis. Analysts said the practice is used by a relatively small number of ultra-wealthy individuals.

Newsom framed the issue as one of tax equity and called for immediate legislative action. According to CBS News, the governor emphasized that closing the loophole is essential for fair taxation.