SACRAMENTO, Calif., June 27 (Our California Times) — California voters will decide in November on a billionaire wealth-tax initiative, and Gov. Gavin Newsom said June 26 that he will vote no and wants the fight moved to Washington.
In a Substack post and video, Newsom said the issue “belongs at the federal level,” arguing that billionaires can move money or residency to states such as Texas or Florida to avoid a California-only tax.
Newsom instead called for 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, according to his post.
The California measure, backed by Service Employees International Union–United Healthcare West, qualified for the November ballot. Descriptions of the initiative in reporting said it would impose a 5% tax on Californians with assets above $1 billion.
Newsom has framed his opposition as a defense of California’s economy, saying a state-level wealth tax could push capital and business out of the state.
