Gavin Newsom comes out swinging against California billionaire tax

California Governor Gavin Newsom is actively opposing a proposed ballot measure, the 2026 Billionaire Tax Act, which would impose a one-time 5% tax on state residents worth over $1 billion. Newsom fears the tax will drive wealthy individuals and businesses out of California, citing examples like Google founders moving assets out of state. The Service Employees International Union (SEIU) is backing the measure, arguing it would generate revenue for healthcare and education. Newsom has engaged in efforts to stop the proposal, including meeting with the SEIU president. Lobby groups, like the California Business Roundtable, are also opposing the tax, echoing concerns about investment flight. The measure needs 900,000 signatures to reach voters in November.

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