Billionaire Tax Flip Stuns California

California Governor Gavin Newsom is pushing a national tax on billionaires — while actively blocking the same kind of tax in his own state.

Quick Take

Newsom wants a federal minimum tax on Americans worth more than $100 million, but opposes a similar one-time 5% wealth tax on California billionaires heading to the state ballot in November.
He admits billionaires can simply move to lower-tax states to dodge state-level taxes — yet offers no clear answer for how a national tax would work or what rate it would set.
Multiple outlets link the proposal to Newsom’s rumored 2028 presidential run, raising questions about whether this is real policy or political theater.
A separate federal billionaire tax bill already exists — introduced by Senator Bernie Sanders and Representative Ro Khanna — which Newsom did not join or endorse.

Newsom’s National Tax Plan: What He’s Proposing

On June 26, 2026, Newsom published a post on Substack calling for what he described as an “economic reset.” He wants a federal minimum tax that ensures the wealthiest Americans pay at least the same tax rate as their workers. The plan targets people with a net worth above $100 million. He also called for returning corporate tax rates to where they stood before the 2017 Trump tax cuts and closing offshore loopholes that let big companies shift profits overseas to avoid taxes.^[1]

Newsom also wants to end what he calls “tax-free lifestyle loans” — a practice where ultra-wealthy individuals borrow money against their stock portfolios. Because loans are not counted as income, they pay no taxes on that money. He also proposed a national public equity fund that would give everyday Americans a share of wealth created by artificial intelligence companies, with proceeds going toward child care, higher education, and health care.^[15]

The Hypocrisy Problem He Can’t Escape

The glaring contradiction here is hard to miss. California voters will decide in November on a one-time 5% tax on the net worth of state billionaires. Newsom opposes it. He says the problem is that billionaires can just pack up and move to Texas or Florida to avoid a state-level tax. He even wrote in his own post: “Wealth is movable, and it shops for the state with the lowest taxes.”^[5] So he’s against taxing billionaires in California — but wants to tax them nationally.

He also objects to how California’s ballot measure would spend the money, saying it locks nearly all revenue into one spending category and would hurt the state’s economy.^[5] But his national proposal doesn’t include a specific tax rate, a funding plan, or any clear path through Congress. As a state governor, he has no power to pass federal tax law on his own. No major congressional leader has publicly backed his plan.^[12]

Presidential Ambitions or Genuine Policy?

Newsom said earlier this year he is “considering running for president” in 2028.^[15] That timing matters. His national tax push came just one day after the California billionaire tax measure qualified for the November ballot — a measure he has been working to block. The Washington Post, CNN, Politico, and CNBC all noted the connection between his proposal and his presidential ambitions. The Washington Times reported he was pressured from the left to take a stronger stance on taxing the wealthy.^[6]

Gavin Newsom Calls for ‘National Billionaires Tax’ to Trigger ‘Economic Reset’

Link in the comment section. pic.twitter.com/IpqIJLVPK6

— The Gateway Pundit (@gatewaypundit) June 27, 2026

Meanwhile, Senators Sanders and Representative Khanna — both of whom support the California measure Newsom opposes — already introduced a federal bill for an annual 5% wealth tax on billionaires nationwide.^[15] Newsom did not join that effort. The Cato Institute notes that wealth tax revenue projections are routinely overstated — the Sanders-Khanna bill claims it would raise $4.4 trillion over a decade, but independent analysis puts the real number closer to $2.3 trillion due to behavioral changes like tax avoidance and asset restructuring.^[22] Newsom also has a 25-person Tech Advisory Council filled with Silicon Valley leaders — raising fair questions about whether his opposition to the state tax quietly protects his tech industry allies while his national proposal stays safely vague and unenforceable.