Newsom Backs National Tax on $100 Million Fortunes as He Fights California's 5% Billionaire Measure
Updated
Updated · The Guardian · Jun 26
Newsom Backs National Tax on $100 Million Fortunes as He Fights California's 5% Billionaire Measure
3 articles · Updated · The Guardian · Jun 26
Summary
Gavin Newsom on Friday paired his opposition to California’s newly certified billionaire-tax ballot measure with a federal alternative: a minimum tax on people worth more than $100 million.
The California initiative would impose a one-time 5% tax on residents worth over $1 billion, but Newsom said a state-only levy would be easily avoided as wealthy people shift assets or residency elsewhere.
His broader plan also targets tax-free borrowing against stock holdings, tighter inheritance rules, higher corporate rates and a public equity stake in AI companies.
Backers of the state measure submitted more than 1.55 million signatures and say the revenue would support healthcare, education and food aid, though it has drawn resistance from billionaires and some labor unions.
The proposal gives Newsom an early economic platform for a possible 2028 presidential run and marks a notable leftward turn on tax policy for the California governor.
Why might a wealth tax be considered unworkable for a state but viable as a national policy for the entire country?
As trillions are passed to the next generation, could changing inheritance tax rules reshape America's economic future?
How can a government capture and fairly distribute the wealth created by artificial intelligence to every citizen?
The 2026 California Billionaire Tax: A $100 Billion Gamble for Healthcare and Economic Equity
Overview
In November 2026, California voters will decide on a proposed billionaire tax that would impose a one-time 5% levy on the net worth of the state’s wealthiest residents, specifically targeting around 200 billionaires. The main goal is to generate substantial revenue to offset deep federal Medicaid cuts and protect essential healthcare funding, ensuring continued support for the state’s healthcare infrastructure and programs. The initiative is strongly championed by SEIU-UHW, which argues the tax is vital for maintaining public health services and other critical state programs, highlighting a pivotal moment for California’s fiscal future.