Newsom’s new plan fails to reduce wealth and power of billionaires
SACRAMENTO — Yesterday, Governor Gavin Newsom and a group of billionaires failed to remove a ballot measure supported by a majority of California voters that would impose a one-time 5% wealth tax on California billionaires.
After unsuccessfully campaigning to kill the measure, Gov. Newsom put forth a nationwide tax proposal that falls far short of addressing the urgent economic and political crisis we face as billionaires continue to hoard wealth and power. It’s hard not to see this as pure political posturing—polling shows a 50-point electoral advantage for candidates who support raising taxes on billionaires.
In response, Tax the Greedy Billionaires (TGB) Campaign Director Igor Volsky issued the following statement:
“Gov. Newsom’s ‘modern Buffett Rule’ proposal is a billionaire-designed decoy that doesn’t tax the excessive wealth billionaires have accumulated—just the income they choose to report. As a result, it enshrines a society in which regular Americans are at the mercy of the billionaire class.
“The Buffett Rule may have felt cutting edge when President Obama proposed it in 2011. But now that our country has just minted its first trillionaire and the AI boom is accelerating the transfer of wealth, Newsom’s approach falls far short of matching the scale of the crisis we face. Instead, he’s laid out a plan to placate billionaires while tricking voters into believing he wants to reduce the wealth and power the ultra-wealthy wield over our lives.
“If Newsom is serious about pursuing national solutions, he should support legislation introduced by lawmakers like Sen. Sanders and Rep. Khanna, which would impose a national 5% wealth tax on billionaires.”
BACKGROUND ON BALLOT INITIATIVE:
The proposed ballot initiative for the November 2026 election would impose a one-time 5% wealth tax on California billionaires, payable in annual installments of 1% over five years. A more detailed analysis of the proposal is available here. At Governor Newsom’s encouragement, Silicon Valley moguls have spent millions opposing the tax on billionaires’ fortunes.
Californians—like the majority of Americans—overwhelmingly support increasing taxes on billionaires. Poll after poll shows supermajority support for taxing the ultra-wealthy. In fact, a majority of Californians favor the initiative, with mostly strong support. Voters want this initiative on the ballot in no small part because they understand that taxing the wealthy is the single best way to break up their concentration of wealth and the power that comes with it.
BACKGROUND ON NEWSOM’S PROPOSAL:
Governor Newsom deserves credit for joining the growing chorus of leaders calling for higher taxes on billionaires and the ultra-wealthy. Closing the buy-borrow-die loophole, reforming inheritance rules, and restoring corporate tax rates are all steps in the right direction.
A few years ago, Newsom’s plan would have been a cutting-edge agenda—but it simply doesn’t solve the core threat we face or address the growing economic and political power billionaires wield. A modern Buffett Rule is still just income tax reform that only reaches wealth when billionaires decide to realize income. Newsom’s proposal does not touch any of the wealth billionaires have already accumulated—and that means it doesn’t go nearly far enough for this moment.
Earlier this year, TGB launched a five-figure ad campaign in early primary states hitting Newsom on this issue.
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