Newsom opposes California billionaire tax, calls for federal reform instead

SACRAMENTO, Calif. — Governor Gavin Newsom is urging Californians to reject a proposed billionaire wealth tax headed to the November ballot.

In an essay published Friday, Newsom said the ballot measure would dedicate most of its revenue to a single area of spending while leaving out key state priorities such as public schools, housing, childcare, healthcare, public safety, and higher education. He argued that California's budget should continue to be set through the legislative process rather than by a single ballot initiative.

Instead, Newsom called for a national billionaires' tax, saying wealthy individuals can avoid state taxes by relocating, making federal action the more effective solution. He proposed a minimum tax on billionaires, closing tax loopholes used by the ultra-wealthy, reforming inheritance laws, restoring higher corporate tax rates, and creating a national public equity fund to ensure Americans benefit from economic growth driven by artificial intelligence.

Newsom said federal tax reform could help fund priorities such as universal childcare, affordable higher education, expanded healthcare, and worker support during the AI transition.

The governor said he will continue campaigning against the California ballot measure while advocating for broader federal reforms he says will make the nation's tax system more equitable.