Governor Gavin Newsom has vowed to block a proposed wealth tax on billionaires, expressing concerns that it could harm the state’s economy.
In an interview with The New York Times, Newsom stated that the introduction of the tax has already prompted some wealthy residents to relocate, taking their tax contributions with them. He is committed to defeating the measure if it reaches the November ballot.
The proposed tax, backed by the Service Employees International Union–United Healthcare Workers West, would impose a one-time 5% tax on Californians with assets exceeding $1 billion. If approved, the tax would apply retroactively to anyone residing in California on January 1, 2026, with payments spread over five years starting in 2027.
Newsom, a Democrat, has consistently opposed wealth taxes, citing their potential to stifle innovation and drive away investment. According to Fox Business, he believes the tax would damage the state’s economy and has already led to significant financial relocations, including those by Google co-founder Larry Page and Oracle chairman Larry Ellison.
Despite his opposition, some critics have attempted to associate the tax proposal with Newsom, a potential Democratic candidate for the 2028 presidential election. However, Newsom remains firm in his stance, emphasizing the need to protect California’s economic interests and stating, “This will be defeated — there’s no question in my mind.”
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