Newsom Moves To Block California's Proposed Billionaire Tax
California Governor Gavin Newsom has pledged to block a proposed wealth tax, arguing that its introduction has already harmed the state by driving billionaires and their tax revenue out of California. In an interview with The New York Times, the Democratic governor said he has been working relentlessly behind the scenes against the proposal. “This will be defeated — there’s no question in my mind. I’ll do what I have to do to protect the state,” Newsom said. Newsom has long opposed a wealth tax, warning that it could stall the tech-driven innovation that has powered the state's economy for years. Newsom has made several efforts in recent years to block legislative wealth tax proposals, making it clear he would not sign them into law. Now, efforts by a large healthcare union to place a new billionaire tax on the ballot have increased the urgency of the issue. The Service Employees International Union-United Healthcare Workers West argues that the tax is necessary to offset the deep cuts to healthcare, driven by President Donald Trump. The union’s proposal calls for the state to allocate 90% of the new tax revenue to healthcare, with the remainder dedicated to food assistance and education. The initiative would require Californians with a net worth beyond $1 billion to pay a one-time tax equal to 5% of their assets. Such an initiative would apply retroactively to anyone living in California as of January 1, and taxpayers could spread their payments across five years starting in 2027.
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A health care union seeks a one-time 5% tax on billionaires' assets after federal funding cuts to health services for lower-income people.
