Newsom’s Tax Push Sparks New Backlash

California Governor Gavin Newsom is pushing a national billionaire tax while secretly fighting the exact same idea at home — and now he wants to rewrite inheritance rules for every American family.

Story Highlights

Newsom posted a Substack proposal calling for a federal minimum tax on anyone worth more than $100 million, plus changes to inheritance rules to stop a “$124 trillion” wealth transfer.
He released this plan one day after a California billionaire tax qualified for the November ballot — a state measure he is actively working to kill.
His own state’s Department of Finance warns the California version could cause hundreds of millions in annual tax losses as wealthy residents leave.
Political analysts call the national proposal a move to set up a 2028 presidential run, not a serious policy push.

Newsom Calls for National Billionaire Tax — But Blocks the Same Thing in California

California Governor Gavin Newsom published a Substack post on June 26, 2026, calling for a federal minimum tax on Americans worth more than $100 million. He wants the ultra-wealthy to pay at least the same tax rate as their workers. He also wants to close a loophole that lets billionaires borrow against their stock portfolios tax-free, avoiding income taxes entirely. The proposal came out one day after a California billionaire tax measure collected enough signatures to appear on the state’s November ballot. ^[1]

Here is the catch: Newsom is fighting that California measure. He told the New York Times in January 2026 that the state tax “has already negatively impacted the state” by pushing some billionaires to move away and take their tax dollars with them. ^[5] California’s own nonpartisan Department of Finance warned the state measure could cause hundreds of millions in annual tax losses. ^[7] So Newsom opposes a state-level billionaire tax because the rich will leave — but he supports a national version of the same idea.

The Inheritance Play and the “Aristocracy” Argument

Newsom’s proposal goes beyond income taxes. He wants to rewrite inheritance rules to stop what he calls a “$124 trillion” transfer of wealth between generations over the next 20 years. He argues that without action, the country will lock in a “permanent American aristocracy of inherited wealth.” ^[1] He also wants to restore corporate tax rates to their pre-2017 levels, reversing the cuts made under President Trump’s first term. ^[4]

Newsom also proposed a “national public equity fund” to give ordinary Americans a share of profits from artificial intelligence. He says it would pay for childcare, healthcare, and job training. ^[12] The proposal does not spell out an exact tax rate for the minimum billionaire tax. It references a “modern Buffett Rule” but leaves the specific number undefined. Critics note this makes it nearly impossible to judge the real fiscal impact.

The Hypocrisy Problem and the 2028 Angle

The contradiction at the heart of Newsom’s pitch is hard to ignore. He blocks the California tax because billionaires will flee the state. But his national proposal assumes they won’t flee the country. Massachusetts raised taxes on millionaires and saw a 20% drop in that population, according to a CBS News panel discussion on the proposal. The Cato Institute found that similar federal wealth tax proposals have raised about half the revenue their backers claimed, once realistic behavior changes are factored in. ^[22]

California Angry After Gavin Newsom Backs National Billionaire Tax Despite Opposing One at Home: ‘Complete Hypocrisy’ #GavinNewsom #Billionaires https://t.co/dQoyFKH75I

— Jason (@jasonlc44) June 28, 2026

Political analysts have been blunt. Commentators at ABC10 and FOX40 called the plan a “calculated political move” tied to Newsom’s expected 2028 presidential run. ^[2] He has no power to pass a national tax on his own. He would need broad support in Congress, which he does not have. Even some Democrats are skeptical. Both Democratic gubernatorial candidate Xavier Becerra and Republican Steve Hilton oppose the California version of the tax. ^[12] Progressive groups and unions are also frustrated — they accuse Newsom of avoiding the fight at home while chasing a national spotlight. The Service Employees International Union (SEIU) is backing the California ballot measure Newsom wants to kill. ^[6] For conservatives, this episode is a clear reminder of what big-government tax-and-spend politics looks like in practice: a politician who admits wealth taxes drive people away from his own state, then turns around and pitches the same idea for the whole country.