Newsom pivots to national billionaire tax after California fight

After spending months opposing a wealth-tax proposal in California, Gov. Gavin Newsom is now calling for a national minimum tax on billionaires and warning that inheriting immense wealth could produce a new American aristocracy. His shift lands while the Calif

For months, Gov. Gavin Newsom has fought a wealth tax in California. Now he’s arguing the country needs an “economic reset” through a national tax on the ultra-rich.

Newsom says it is time for “a true minimum tax. a true minimum tax on billionaires that ensures the people at the very top pay at least the tax rate their own workers’ pay.” His pitch turns on a basic frustration about how billionaires are taxed: when income is low. because their wealth is largely tied up in shares of major companies. there may be little taxable income to report unless they sell.

In his argument, billionaires can also borrow against their holdings “with no taxable income,” allowing their effective tax burden to stay low compared with wage earners. Newsom’s proposed national approach would set a minimum tax for anyone with a net worth of more than $100 million.

Brian Galle, a law professor at UC Berkeley, describes how that structure would work in practice. He says a wealth tax would impose tax on “the Bezos’ and other billionaires of America, regardless of how much they sold or hadn’t sold.”

Newsom also raised the prospect of rewriting inheritance rules as part of the broader effort. He pointed to what he called “the largest intergenerational wealth transfer in human history” that he says will take place over the next two decades. Without changes, he warned it could “lock in a permanent American aristocracy of inherited wealth.”.

He framed the debate against a national background of failed “trickle-down economics,” calling it “a nearly 50-year experiment that has failed.”

The timing, however, complicates the political picture at home. Newsom’s national announcement comes as he doubles down on opposition to a one-time tax on billionaires in California. Writing on his Substack. Newsom said his concerns centered on where the money would go—he argued it would only help keep health care costs down and not flow to other sectors like education.

In California, billionaire opponents have spent heavily either fighting the proposal or moving out of the state, Newsom has faced that backlash even as the measure remains scheduled for voters. The billionaire tax proposal is officially on the ballot for Californians to decide come November.

Galle says the California timing may be hard to ignore. The fact that the measure is still headed to voters. he said. suggests Newsom may be trying to communicate a complicated message to the electorate—or. depending on how opponents spin it. that he could be attempting to distract some voters from the reality that he spent so long trying to defeat the California billionaire tax.

Supporters of that California plan include a majority of Californians, especially Democrats.

Newsom’s maneuver could also cut against him in the political math of a Democratic primary. He has not officially announced a 2028 presidential run, but it is widely expected. Galle argues that pushing back on a proposal that is popular with progressives is difficult to explain to a primary electorate. “If you’re going to run in a Democratic primary. and your main recent policy accomplishment was defeating a policy that was wildly popular among Democrats. you probably would have to do something to shore up your base. ” he said.

Polling, at least, appears to offer Newsom room to argue that his agenda is in step with broader sentiment. Galle pointed to polling showing most Americans believe billionaires should be paying more in taxes.

Still, Newsom’s standing with the public is mixed. He remains a top contender in 2028 presidential polling, but many Americans hold an unfavorable view of him.

On top of the policy question sits a practical one: money. Even as Newsom pursues populist steps in California. Galle notes that Newsom has historically relied on billionaire money to reach office. A presidential run costs a lot. and it’s unclear how a proposal aimed at billionaires would affect his campaign fundraising if he enters the race.

And there is the question of backlash. Galle says billionaires understand that their wealth can translate into political power. and that they are unlikely to welcome even a first step toward reducing that influence. “Billionaires understand. like most people do. that their billions are a way of ensuring political power. and they don’t want to see even a first small step towards reducing that political power. ” he said.

Gavin Newsom national wealth tax billionaire tax minimum tax on billionaires inheritance tax 2028 presidential race California ballot UC Berkeley Brian Galle Substack