SACRAMENTO, Calif., June 27 (Our California Times) — California Gov. Gavin Newsom said he will vote against a billionaire wealth-tax measure that has qualified for the state’s November ballot, while pressing Congress to create a federal tax on the ultra-wealthy instead.
In a Substack post and video, Newsom wrote, “I’m voting no,” and said, “The fight belongs at the federal level, where this broken system was created in the first place.” He argued that the issue should be handled in Washington rather than by one state.
The measure was advanced by the Service Employees International Union–United Healthcare West, according to reporting on the initiative. News reports described it as a one-time 5% tax on Californians with assets above $1 billion.
Newsom said the proposal could drive wealthy residents and businesses out of California, and said billionaires can move to states such as Texas or Florida to avoid state taxes. He had previously said in an interview with The New York Times in January that he intended to stop the proposal.
Instead of the state tax, Newsom proposed a national tax on Americans worth more than $100 million, along with changes to inheritance rules, limits on borrowing against appreciated assets and higher corporate tax rates.
