SACRAMENTO, Calif., June 27 (Our California Times) — California Gov. Gavin Newsom said he will vote no on a billionaire wealth-tax measure headed to the state’s November ballot and wants Congress to impose a national tax on the ultrawealthy instead.
In a Substack post and video, Newsom said the issue “belongs at the federal level, where this broken system was created in the first place.” He also said billionaires can move wealth or residency to states such as Texas and Florida to avoid a state tax.
Newsom’s alternative would set a federal minimum tax on Americans worth more than $100 million, along with changes to inheritance rules, limits on borrowing against appreciated assets and higher corporate tax rates, according to the post.
The California measure would impose a one-time 5% tax on Californians with assets above $1 billion. Its qualification for the November ballot sets up a statewide vote on a proposal Newsom says could push wealth out of California and weaken the state’s economy.
