Newsom Slams California Billionaire Wealth Tax, Cautions on Impact to Essential Services
‘The Big Money Show’ panel discusses a new report raising questions about California’s massive mental health spending as homelessness worsens and oversight remains limited.
California Governor Gavin Newsom is taking a strong stance against a proposed billionaire wealth tax, cautioning that this initiative could jeopardize funding for essential services such as education and public safety, rather than addressing the state’s budgetary issues.
“California has the most progressive tax structure in the United States of America. We do… That said, I fear the way this has been drafted,” Newsom expressed during a Bloomberg News event in San Francisco on Thursday evening.
He elaborated, stating, “I was burdened by the facts. The fact is, it actually will reduce investments in education. It will reduce investment in teachers and librarians, childcare. It will reduce investments in firefighting and police. The impact of a one-time tax does not solve an ongoing structural challenge that has been exacerbated by the impacts of H.R. 1.”
During the event, the governor discussed the potential ramifications of the proposed billionaire tax and addressed inquiries regarding his discussions with individuals reportedly leaving California.
FLORIDA WINS AGAIN: QUANTUM COMPUTING COMPANY JOINS EXODUS FROM HIGH-TAX CALIFORNIA
Although the initiative has yet to qualify for the November 2026 ballot, it is backed by the Service Employees International Union–United Healthcare Workers West. The proposal would impose a one-time 5% tax on the net worth of California residents exceeding $1 billion, due in 2027. Taxpayers would have the option to spread payments over five years, incurring additional costs, as noted by the Legislative Analyst’s Office.
Gavin Newsom, governor of California, during an interview in San Francisco, California on Thursday. (Getty Images)
If voters approve the measure, anyone who was a California resident on January 1, 2026, would be liable for the tax, according to the proposal.
Reiterating his opposition to the tax, Newsom pointed out that new data from the Legislative Analyst’s Office indicates the proposed wealth tax would yield a “one-time” influx of revenue, followed by a significant decline in tax revenue as taxpayers relocate. “And that is what I fear at a state level,” he added.
“There’s impact as it relates to the flow of capital, the impacts on the market, which are not inconsequential,” he stated. “You’ve got to democratize our economy if you’re gonna save democracy, absolutely. But this proposal by one local [SEIU–United Healthcare Workers West], I do not believe is the answer.”
Trevor Foreman, an SEIU member and hospital security officer in Sacramento, emphasized the urgency of the situation, stating, “California’s billionaires pay much lower tax rates than what working families pay out of every paycheck. And soon, massive federal health care funding cuts in 2026 will collapse key parts of the California healthcare system,” as reported by Fox News Digital.
The Corcoran Group agent Julian Johnston exclusively speaks to Fox News Digital about the new wave of California billionaires migrating to South Florida due to a proposed wealth tax.
Foreman further warned, “Local hospitals and emergency rooms will shut their doors forever because billionaires insist on paying less than the rest of us. In addition, more than 4 million businesses will face steep increases in health insurance premiums, leading to widespread layoffs across multiple industries as employers absorb the higher costs of coverage.”
Newsom acknowledged the union’s determination to get its measure on the November ballot, stating, “They have the money… we’ll see. There’s a lot of leverage in this… By the way, someone said to me, ‘You need to veto this.’ I said, well, I can’t, because it’s not legislative. And by the way, the legislature’s not promoting this.”
He added, “It’s just become a story, even though, for me, it was an issue we’ve been tackling for five or six months. I’ve engaged with the proponent of it directly, indirectly, my staff consistently is working with the person that’s championing this.”
‘The Bottom Line’ panelists Caroline Downey and Brianna Lyman criticize California Gov. Gavin Newsom’s trip to Davos and sound the alarm on a Democratic governor’s ‘bait and switch’ on ‘The Bottom Line.’
When asked about his approach to discussions with California’s 200 billionaires, Newsom remarked, “there’s some extraordinarily enlightened people in that category, and there’s some that they put a mask on.” He acknowledged the prevailing anxiety among them, stating, “I think they’re disappointed in some respect as well. I mean, it’s just a lot of anxiety out there.” He emphasized the state’s commitment to expanding healthcare, which, while beneficial, is also putting pressure on the Medicaid budget.
As the debate continues, Newsom remains focused on finding alternative solutions to the challenges facing California.
‘The Big Money Show’ panel discusses a new report raising questions about California’s massive mental health spending as homelessness worsens and oversight remains limited.
California Governor Gavin Newsom is taking a strong stance against a proposed billionaire wealth tax, cautioning that this initiative could jeopardize funding for essential services such as education and public safety, rather than addressing the state’s budgetary issues.
“California has the most progressive tax structure in the United States of America. We do… That said, I fear the way this has been drafted,” Newsom expressed during a Bloomberg News event in San Francisco on Thursday evening.
He elaborated, stating, “I was burdened by the facts. The fact is, it actually will reduce investments in education. It will reduce investment in teachers and librarians, childcare. It will reduce investments in firefighting and police. The impact of a one-time tax does not solve an ongoing structural challenge that has been exacerbated by the impacts of H.R. 1.”
During the event, the governor discussed the potential ramifications of the proposed billionaire tax and addressed inquiries regarding his discussions with individuals reportedly leaving California.
FLORIDA WINS AGAIN: QUANTUM COMPUTING COMPANY JOINS EXODUS FROM HIGH-TAX CALIFORNIA
Although the initiative has yet to qualify for the November 2026 ballot, it is backed by the Service Employees International Union–United Healthcare Workers West. The proposal would impose a one-time 5% tax on the net worth of California residents exceeding $1 billion, due in 2027. Taxpayers would have the option to spread payments over five years, incurring additional costs, as noted by the Legislative Analyst’s Office.
Gavin Newsom, governor of California, during an interview in San Francisco, California on Thursday. (Getty Images)
If voters approve the measure, anyone who was a California resident on January 1, 2026, would be liable for the tax, according to the proposal.
Reiterating his opposition to the tax, Newsom pointed out that new data from the Legislative Analyst’s Office indicates the proposed wealth tax would yield a “one-time” influx of revenue, followed by a significant decline in tax revenue as taxpayers relocate. “And that is what I fear at a state level,” he added.
“There’s impact as it relates to the flow of capital, the impacts on the market, which are not inconsequential,” he stated. “You’ve got to democratize our economy if you’re gonna save democracy, absolutely. But this proposal by one local [SEIU–United Healthcare Workers West], I do not believe is the answer.”
Trevor Foreman, an SEIU member and hospital security officer in Sacramento, emphasized the urgency of the situation, stating, “California’s billionaires pay much lower tax rates than what working families pay out of every paycheck. And soon, massive federal health care funding cuts in 2026 will collapse key parts of the California healthcare system,” as reported by Fox News Digital.
The Corcoran Group agent Julian Johnston exclusively speaks to Fox News Digital about the new wave of California billionaires migrating to South Florida due to a proposed wealth tax.
Foreman further warned, “Local hospitals and emergency rooms will shut their doors forever because billionaires insist on paying less than the rest of us. In addition, more than 4 million businesses will face steep increases in health insurance premiums, leading to widespread layoffs across multiple industries as employers absorb the higher costs of coverage.”
Newsom acknowledged the union’s determination to get its measure on the November ballot, stating, “They have the money… we’ll see. There’s a lot of leverage in this… By the way, someone said to me, ‘You need to veto this.’ I said, well, I can’t, because it’s not legislative. And by the way, the legislature’s not promoting this.”
He added, “It’s just become a story, even though, for me, it was an issue we’ve been tackling for five or six months. I’ve engaged with the proponent of it directly, indirectly, my staff consistently is working with the person that’s championing this.”
‘The Bottom Line’ panelists Caroline Downey and Brianna Lyman criticize California Gov. Gavin Newsom’s trip to Davos and sound the alarm on a Democratic governor’s ‘bait and switch’ on ‘The Bottom Line.’
When asked about his approach to discussions with California’s 200 billionaires, Newsom remarked, “there’s some extraordinarily enlightened people in that category, and there’s some that they put a mask on.” He acknowledged the prevailing anxiety among them, stating, “I think they’re disappointed in some respect as well. I mean, it’s just a lot of anxiety out there.” He emphasized the state’s commitment to expanding healthcare, which, while beneficial, is also putting pressure on the Medicaid budget.
As the debate continues, Newsom remains focused on finding alternative solutions to the challenges facing California.
