Newsom begs Californians to vote ‘no’ on billionaire’s tax in face of mass exodus, pitches nationwide tax hike
Democratic Governor of California Gavin Newsom He suffered another blow after he was officially placed on the November ballot, warning that a massive wealth tax could lead to an exodus of wealth and business from the state.
Despite his opposition, the measure’s sponsor, Billionaire Tax Now, announced Thursday that it would be officially added to the state’s ballot. The measure, called the California Billionaire Tax Act, would impose a one-time 5% “emergency” tax on Californians with assets exceeding $1 billion. The tax was approved by a socialist Senator. Bernie SandersThe I-Vt. called it “reasonable and necessary” “at a time of unprecedented and increasing wealth consolidation and income inequality.”
However, rumored leading Newsom Democratic Party‘s presidential candidacy fiercely opposed the tax, citing fears that billionaires would leave for states like Texas or Florida.
in a long time Substack post Newsom wrote the following about the tax: “Last night, it was confirmed that a wealth tax will be placed on the November ballot in California. I am voting no.”
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California Democratic Gov. Gavin Newsom has strongly opposed the proposed state billionaire tax while pushing for a similar national tax.
(Getty Images)
“You may not be able to move to Texas or Florida to shelter your income from taxes, but I promise you billionaires can and do,” he wrote, adding: “Wealth can be moved and sold to the state at the lowest taxes.”
In a state that has already lost its leading businessmen Elon MuskNewsom isn’t the only one warning that a billionaire tax could worsen ongoing exodus from California, according to Google co-founder Larry Page and Oracle founder Larry Ellison.
Earlier this year, Silicon Valley tech entrepreneur Allison Huynh predicted in an interview He told Fox News Digital that the tax would cause a “mass exodus,” starting “not just with billionaires, but with people investing in new ideas, new infrastructures like artificial intelligence, healthcare, technology, robotics.”
Huynh likened the proposed tax increase to a restaurant about to close.
“Instead of lowering the price, they are increasing it,” he said. “Then you walk into the restaurant and pay around $50 for a bowl of really bad meatballs.”
Fox News Digital has reached out to Billionaire Tax Now for comment.
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Sen. Bernie Sanders, I-Vt., has endorsed the California billionaire tax.
After news broke that the measure would be placed on the ballot, Newsom called on the United States to implement a national billionaire tax and what he called a “new social contract.”
In an
Substack argued in its post that “the fight to make the richest Americans pay more taxes is not a fight we need to fight state by state.” Instead, he wrote: “The fight belongs to the federal level where this broken system was created in the first place.”
In January, Newsom said he felt justified in opposing a proposed wealth tax after reports showed some of California’s wealthiest residents moving their money and businesses out of state, and warned he would oppose the measure. hurt the economy and drive away investment.
“That’s my fear,” Newsom said in a Politico interview Monday. “This is exactly what I warned about. This is happening.”
“The evidence is there. The impacts are very real; not just significant economic impacts in terms of revenue, but also indirect impacts of start-ups, of people questioning long-term commitments, medium-term commitments,” he continued. “In a time of so much uncertainty, this is not what we need right now. Quite the opposite.”
Despite Newsom’s opposition, the group behind the tax effort – Billionaire Tax Now, sponsored by the Service Employees International Union – United Healthcare Workers West – continued to put it on the ballot.
The union argues that the tax would “prevent the collapse of California health care and help fund California public K-14 education and state food assistance programs.”
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California Governor Gavin Newsom presents his final state budget plan on May 14, 2026, at the Capitol Annex Swing Space in Sacramento.
Billionaire Tax Now is confident the measure will pass, writing in X: “While a few controversial billionaires and their friends in Sacramento want to see it CaliforniaHospitals in are closing and tax breaks for billionaires are preserved; “The support of the public is on our side.”
Meanwhile, some of Newsom’s critics argue that his opposition to the measure stems from a desire to appeal to potential presidential donors.
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Billionaire Tax Now republished X post by David Sirota, founder of progressive investigative news outlet The Lever; here “Gavin Newsom is trying to protect 250 potential presidential donors for 2028, even if it means medically bankrupting 3 million of his voters.”
Reached for comment, Newsom’s office referred Fox News Digital to Substack and its video.
Original article source: Newsom implores Californians to vote ‘no’ on billionaire’s tax in response to mass immigration and proposes nationwide tax hikes
