Newsom Advocates for National Billionaires’ Tax, Opposes California Measure

California Governor Gavin Newsom has proposed a national ‘billionaires’ tax’ while opposing a separate tax measure targeting billionaires in his own state. Newsom’s national proposal, announced on June 26, 2026, includes a minimum tax on individuals with a net worth exceeding $100 million, restrictions on tax-free borrowing against stock portfolios, new inheritance tax rules, and an increase in corporate tax rates to levels seen before former President Donald Trump’s first term. Additionally, the proposal suggests the creation of a national public equity fund to provide Americans with a stake in artificial intelligence companies ^[1][2].

In contrast, Newsom opposes a California ballot measure backed by SEIU-United Healthcare Workers West, which seeks to impose a one-time 5% tax on the assets of billionaires residing in California as of January 1, 2026. This measure is intended to raise funds for Medicaid and other state programs and will appear on the November 2026 ballot ^[2][3].

Newsom has expressed concerns that the California measure could drive billionaires out of the state, thereby eroding the tax base. His stance has drawn criticism from some quarters, including U.S. Representative Ro Khanna, who accused Newsom of avoiding the California tax fight and argued that the national proposal ‘goes too easy on billionaires’ ^[1][3].

Newsom outlined his national proposal in a Substack post published on June 26, 2026. The proposal aligns with broader discussions on wealth taxation at the national level, though it has not yet been formally introduced as legislation ^[1].

What Is Known

Newsom has proposed a national billionaires’ tax with several components aimed at increasing taxes on the wealthy and corporations. He opposes a California-specific tax measure that would impose a one-time tax on billionaires’ assets. The California measure is supported by a healthcare union and is intended to fund state programs ^[1][2][3].

What Remains Unclear

It remains unclear how Newsom’s national proposal will be received by lawmakers and whether it will gain traction in Congress. Additionally, the potential impact of the California measure on the state’s economy and billionaire population is uncertain, as is the outcome of the November 2026 ballot ^[1][2].