Newsom Backs Federal Billionaire Tax After Opposing California Wealth Tax
California Gov. Gavin Newsom is trying to turn a state-level defeat on billionaire taxes into a national policy fight.
After failing to keep a union-backed California billionaire tax measure off the November 2026 ballot, Newsom is now promoting a federal approach that would create a minimum tax on ultra-wealthy Americans, close tax loopholes and explore a public equity fund tied to the artificial intelligence industry.
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The contrast is politically important. Newsom opposes California’s one-time 5% tax on residents worth more than $1 billion, arguing a state-only wealth tax could drive billionaires, and their tax revenue, out of California. Supporters say the measure is needed to help fund healthcare, education and food assistance.
The result is a two-front fight. California voters will decide the ballot measure, while Newsom is testing a national economic message built around AI wealth, inequality and tax fairness.
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