SACRAMENTO, Calif., June 27 (Our California Times) — California Gov. Gavin Newsom said he will vote no on a billionaire wealth-tax measure that qualified for the November ballot on June 26, while urging Congress to adopt a national tax on billionaires instead.
In a Substack post and video message cited by several outlets, Newsom said the fight over taxing extreme wealth “belongs at the federal level” and argued that wealthy taxpayers can move money or residency to states with lower taxes. He framed his opposition as a defense of California’s economy and warned that the state proposal could drive wealth and businesses out.
The ballot measure would impose a one-time 5% tax on Californians with assets above $1 billion, according to reporting on the initiative language. Coverage of the ballot process identified Service Employees International Union-United Healthcare West as the measure’s backer.
Newsom instead proposed a federal billionaire tax and broader tax-code changes, including changes to inheritance rules, limits on borrowing against appreciated assets and higher corporate tax rates, according to his post. He said the issue should be settled nationally rather than state by state.
Newsom had signaled opposition earlier this year in an interview with The New York Times, saying he intended to stop the measure. The initiative’s move onto the November ballot now sets up a statewide vote on whether California should tax its richest residents.
