Laurel Rosenhall, Newsom Vows to Stop Proposed Billionaire Tax in California, N.Y. Times (Jan. 13, 2026):
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.
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The initiative would require Californians with a net worth beyond $1 billion to pay a one-time tax equal to 5 percent of their assets. It would apply retroactively to anyone who was living in California as of Jan. 1, and taxpayers could spread their payments across five years starting in 2027.
While Mr. Newsom helped stop past wealth tax bills in the State Capitol, the new proposal is being driven by the Service Employees International Union-United Healthcare Workers West through the initiative process and beyond the reach of his veto pen.
More from TaxProf Blog’s coverage of California’s proposed billionaire tax:
- WSJ: The California Campaign to Introduce a First-of-Its-Kind Billionaire’s Tax (Nov. 14, 2025)
- Tax Notes and Shanske on California’s Proposed Billionaire’s Tax (Nov. 18, 2025)
- WSJ: Threat of California Billionaire Tax Draws Criticism from Ultrawealthy (Jan. 2, 2026)
- Washington Post: California Will Miss Billionaires When They’re Gone (Jan. 2, 2026)
- Galle, Gamage & Shanske: Correcting the Record: Responding to Some Legal Arguments About the 2026 Billionaire Tax Act (Jan. 9, 2026)
