California governor Gavin Newsom wants a national 'billionaires' tax'
What's the story
California Governor Gavin Newsom has proposed a national "billionaires' tax," as he considers a run for the presidency. The proposal comes just a day after the state wealth tax measure, which Newsom opposes, qualified for the November ballot. Instead of supporting California's one-time 5% wealth tax on billionaires, Newsom is advocating for a federal minimum tax rate on Americans worth over $100 million.
Tax reform
Newsom's comprehensive tax reform proposal
Along with the national "billionaires' tax," Newsom also wants to revert corporate tax rates to pre-2017 levels and close offshore loopholes that let multinationals shift profits and pay less in taxes. He has called for a revision of inheritance rules, fearing that without action, the ultra-wealthy will create a permanent American aristocracy of inherited wealth.
Tax opposition
California's billionaire tax measure qualifies for November ballot
The proposal comes after California's own billionaire tax, a one-time 5% levy on billionaire wealth, qualified for the November ballot. The measure was introduced by healthcare workers union SEIU-UHW in response to deep healthcare funding cuts under President Donald Trump's "Big Beautiful Bill." Despite heavy spending from billionaires opposing the tax, SEIU-UHW Vice President Debru Carthan has vowed that "the billionaire tax will be on the November ballot" and they intend to win.
Equity fund
National public equity fund proposed
Newsom is also proposing a national public equity fund, giving Americans a stake in economic gains generated by artificial intelligence companies. The fund would support universal child care, free higher education, career training, and healthcare. "Part of this fund could provide a real transition for the laid-off factory worker in Ohio or the 25-year-old coder in San Francisco who sent out a thousand resumes and got zero callbacks," Newsom wrote.