Newsom Backs National Billionaires’ Tax and 5% Wealth Levy as 2028 Democrats Shift Left
Updated
Updated · POLITICO · Jun 29
Newsom Backs National Billionaires’ Tax and 5% Wealth Levy as 2028 Democrats Shift Left
3 articles · Updated · POLITICO · Jun 29
Summary
Friday’s proposal put Gavin Newsom behind a national billionaires’ tax and a public equity fund that would hold stakes in major AI startups, marking a sharper economic turn ahead of a likely 2028 run.
The shift came hours after a California ballot measure imposing a one-time 5% tax on billionaire assets qualified for the ballot, despite Newsom having spent the past year fighting it.
Newsom cast the plan as an “economic reset” tied to affordability, inequality and democracy, arguing Democrats need bigger ideas than opposition to Donald Trump alone.
The move reflects broader pressure on Democratic hopefuls to confront concentrated corporate power more directly, as progressive candidates and figures like Chris Murphy push anti-billionaire, anti-corporate messages.
Can a US national wealth tax succeed where similar European policies have failed and been repealed?
How would a public AI fund avoid stifling innovation while ensuring profits benefit all citizens?
The $100 Billion Question: California’s Wealth Tax Ballot, Newsom’s Federal Plan, and the Democratic Party’s Crossroads
Overview
California is facing a major political moment with a proposed statewide wealth tax that has sparked intense debate and put Governor Gavin Newsom in the spotlight. Newsom opposes the state-level tax, arguing that tackling wealth inequality should happen through federal reforms instead. He has outlined a national economic vision focused on federal-level solutions to address systemic disparities, rather than piecemeal state measures. This debate not only highlights divisions within the Democratic Party but also raises questions about the best way to achieve economic fairness, making California’s decision a key test for future U.S. tax policy.