Newsom Vows to Stop Proposed Billionaire Tax in California

[demmiblue]

Source: NYT

Gov. Gavin Newsom said he was working behind the scenes to block a proposed tax on billionaires’ wealth and was committed to defeating the measure if it reached the ballot.

Gov. Gavin Newsom vowed on Monday to stop a proposed wealth tax in California, saying that its mere introduction had already hurt the state by driving some billionaires to relocate and take their tax dollars with them.

Mr. Newsom, a Democrat, said in an interview with The New York Times that he had been relentlessly working behind the scenes against the proposal, and that he would fight the measure if it reached the November ballot.

“This will be defeated — there’s no question in my mind,” Mr. Newsom said.

“I’ll do what I have to do to protect the state,” he added.

Read more: https://www.nytimes.com/2026/01/13/us/newsom-billionaire-tax-california.html

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[TBF]

1. Talk about being on the wrong side of history - nt

[ancianita]

2. He needs to explain more, since it was his taxing the wealthy that balanced CA's budget, with even a surplus. Why is

this wealth tax so much worse?

California has the most billionaires of any U.S. state, with recent estimates placing the number around 190 to over 200, with figures varying slightly by source and date, but consistently showing California leading New York and Florida.

They're not ALL moving to TX, just a few.

So based on that population number, Newsom's arguments aren't solid and don't really hold up.

[House of Roberts]

3. Just when you think he's your guy,

he goes back to coddling the wealthy, and disqualifies himself.

[LudwigPastorius]

36. Just because he's an expert-level troll when it comes to Trump shouldn't mean that...

we forget that Newsom was also the guy who gave Steve Bannon, Michael Savage, Newt Gingrich, Dr. Phil, Sean Spicer, and Charlie Kirk a platform on his podcast so they could try to spread their bullshit and hate.

[malthaussen]

4. Because the gods only know, the wealthy are too poor to pay taxes. n/t

[cstanleytech]

5. Billionaire taxes won't work well, what we need are corporate taxes and franchises should count as part of the company.

[Fiendish Thingy]

11. Why not both?

Then America could truly be great because it could afford all those needed social programs and enforcing all the regulations republicans have gutted.?

[cstanleytech]

23. Because they actually will flee the country because they can afford it easily if we did it more than likely.

Corporations would have a harder time doing so but we would have to craft it as a retroactive law to prevent companies from trying to evade it by moving their corporate headquarters to another country.

[Fiendish Thingy]

25. If they are US citizens, fleeing the country won't protect them

The US is one of only two countries that taxes based on citizenship, not residency.

[cstanleytech]

32. Yeah but they would probably do it Tina Turner did which is give up her citizenship.

However a corporation can't exactly give up its citizenship to escape paying taxes on profits it earns inside the United States.

[travelingthrulife]

47. Good. Let them flee.

[JT45242]

34. he needs to clearly say that if it is the reasoning

otherwise -- it makes him look like a puppet of the uber rich

[angrychair]

6. Wow...well at least he is telling us now

Who's side he is really on.

This is why Democrats can't have nice things because we do and say shit like this.

Now, I have been unequivocally clear that billionaires are the true enemies of the state and this is a hard red line for me.

Sorry, this guy should NOT be president in my opinion.
(Yes, if he somehow ends up as the nominee I will vote for him but only because the alternative is much worse but that should not be the standard we are forced into)

Now can we please have a more progressive candidate and stop courting these billionaire sycophants?

[EuterpeThelo]

7. This is very upsetting

On balance, I feel Gavin Newsom has been one of the best governors our state has had in my lifetime.

That said, he sometimes gives me SERIOUS pause and I really hope he is NOT our 2028 nominee for prez because, TBH, I don't think he can win nationally. Many people outside the state think he's a flaming "libt@rd" and blame him for not being able to fix things that pre-date his term (like homelessness or the failed bullet train). At the same time, many of us here are troubled by some of his less-than-progressive takes on certain things.

I love the fire he brings against the current regime (proving that the "when they go low..." ship sailed long ago), but I don't appreciate his stance on trans people or his platforming of extremists on his podcast.

HOW does not making billionaires pay their fair share help anyone but the 1%????

[Javaman]

8. who are his donors. let's start there.

follow the money.

[Clouds Passing]

9. Spoiled little billionaires

[Fiendish Thingy]

10. A man of the people, amirite?

As I said before, just because he can troll Trump with finesse and glee (and those posts are likely not written by Newsom himself), doesn’t make him the best choice for the Dems 2028 nominee.

If Dems are to restore democracy, repair the damage from the Trump era, and govern effectively, besides expanding the court, it’s going to require a ton of cash, and somebody is going to have to pay for it.

IMO, that somebody should be the billionaires who twice got sweet juicy tax cuts during both Trump administrations. Otherwise it’s going to be “austerity budgets” for a generation.

[Mr. Mustard 2023]

12. We can't afford child care, health care and to put roof's over our heads and

Gavin Newsome doesn't want to tax billionaires. I've read many warning about Newsome and imo this proves their warnings about him were correct.

[Mr. Sparkle]

13. This is the problem with some democrats right here

They listen to the donors more than the people, the base. smh

[CountMyVote4Reality]

14. More NOPE for Newsom. n/t

[grockri]

15. I don't think I will be supporting him in 2028 primary.

I don't think he is that bad. But this is bullshit. I wll support anyone but him. Talks tough and rolls over for Billionaires.

[flamingdem]

16. I trust Gavin. As usual conservatives are trying to kneecap him

before the primaries.

No one on DU can see through this?

[groundloop]

19. Please explain. I'll keep an open mind on this, HOWEVER.....

On the surface his stance on this seems very wrong. I'd like to understand his reasons.

[RoseTrellis]

22. Words in his mouth?

How, exactly? Are not these his own words?
Newsome was elected to follow the will of the people, and I’m fairly certain the residents of Cali want the rich taxed for their fair share.

[Karma13612]

17. Well,

President Mark Kelly has a nice ring to it.

Hopefully Kelly throws his hat in the ring. He’ll be my choice if he is STILL a candidate by the time NY finally gets around to their primary. Another reason that all primaries should be on the same damn day in this country. I understand the mechanics of elections. But, it pisses me off to no end. I agree when people say they don’t have a say in the primary candidate selected. We wait months and watch our favored candidate sometimes fall by the wayside. I was heartbroken when I couldn’t fill in the little circle for Liz Warren. Early states make the decisions for the whole darn country.

It’s Wrong!!!!

[Traildogbob]

26. Kelly should destroy Gav.

All in for my fellow Navy man. Did The Gav serve??

[Jose Garcia]

18. Instead of making a knee-jerk decision, he listened to the experts who work for him and made an informed decision

[angrychair]

20. What was that exactly

Im interested in hearing why we need to play sycophant to billionaires.

[Jose Garcia]

38. Economists employed by the state determined that the new tax would create a short-term increase revenue.

But over the long-term there would be a net decrease due to billionaires leaving state. These people already pay a significant amount of state taxes, and the amount that the state would lose by them leaving would not be made up by the increase in those who stayed.

[angrychair]

39. I call BS

So the only option is to kiss their feet and cut their taxes?

I seriously doubt they pay any taxes at all. People get hung up on the amount without understanding the scaling. Saying a billionaire paid a million dollars in taxes sounds like a lot to someone only making 50k a year but it actually only represents a fraction of a fraction of their actual wealth and they often are paying significantly less of a percentage of their wealth compared to the average person.

[Jose Garcia]

40. Newsome is not advocating cutting taxes for billionaires. Where did you get they idea that he was?

Even if a billionaire is 'only' paying $1 million per year in taxes, that is more that the zero which they would pay if they left the state.

[angrychair]

41. Again

So it's ok to ask me to pay 24% of my annual gross income but it's not ok to ask a billionaire to pay 24% of their gross annual wealth accumulation?

How exactly is that fair? They are, by default, getting a tax cut if they are not being expected to pay the same tax burden as everyone else.

[Nigrum Cattus]

24. that's typical Newsom

I'm a native Californian
1) the reason there are billionaires is because of our people
2) billionaires don't pay their fair share of taxes, that's why there is a proposal
3) doesn't matter how much money you have, you the same voting power as anyone else

[global1]

27. I Wake Up This Morning And Find Newsom Wanting To Kill The Billionaire Tax & Warren Advising Tr**p On......

affordability.

Is this a dream or a nightmare?

Newsom wants to be the Dem nominee and he's just thinking that he doesn't want to piss off the billionaires because he's gonna need their money/donations to be a contender.

I really don't know what Warren is up to.

[pwb]

28. But they have so much money still after they pay taxes?

Why do they always want more more more? People who make enough money are the happiest.

Our wealth class has come out of the closet under trump. They are not nice people. Generally. IMO.

[Buddyzbuddy]

29. Wow, that's the line for me. Please don't run for president.

Neither I nor anybody in my family will be voting for you ever again. No explanation needed, your action says it all.

I stuck with you and defended you when you passed the gas tax, when you brought this boondoggle fast train, when you raised vehicle registration fees when you didn't feel a need to defend trans rights and when all of us had to wear masks and avoid public events while you were out partying with no mask.
We are done.

[CTyankee]

37. Not so fast! He isn't the only star candidate we've got! My senator, Chris Murphy, could be a terrific candidate for us.

We've got some time (unfortunately in some ways). I don't know if Chris could pull this off but at this stage we can deal with that.

AND there might be more. I've pretty much given up a woman president at this moment. I'm old and my hopes die hard...

[orangecrush]

30. Goodbye Presidential bid

[RussBLib]

31. Isn't the tax proposal 5%?

Just make it 1% extra. Be more gradual.

https://russblib.blogspot.com/?m=1

[JT45242]

33. I generally like him -- but he is on the wrong side of this one

If he would veto because it was unconstitutional -- I could maybe defend it as a rule of law thing.

But if the people of California want to put a constitutional amendment to tax wealth and not just income to close all teh loopholes and make the rich pay their fair share -- he should get out of the way.

[LudwigPastorius]

35. "Newsom Vows to Stop Proposed Billionaire Tax in California"

[RandiFan1290]

42. L O L

[Deminpenn]

43. This billionaires tax is going to be on

the ballot and it is going to pass.

While I can understand the grounded economic analysis, people are really, really mad about the wealth disparity and outsized influence of the super rich in America.

It's very much like the popular attitude in the late 1920s. It's why even Carville has told Dems they need run the most populist campaign since FDR.

[EX500rider]

44. I expect he is right, lots of folks would move to avoid a $50,000,000 tax bill (per billion)

Also being worth a billion does not mean you have the 50 million in the bank so moving might be the cheaper outcome for some.

[travelingthrulife]

45. bad move dude

[travelingthrulife]

46. Well, I sure as hell am going to vote for it.