Newsom proposes national wealth tax, opposes California measure

California voters will decide in November on a proposed one-time 5% tax on billionaires, a measure backed by the Service Employees International Union-United Healthcare Workers West, which aims to generate revenue for the state's healthcare, education, and food assistance programs. Governor Gavin Newsom opposes the ballot initiative, arguing that wealth is mobile and such tax fights are best addressed at the federal level. Newsom, who is considering a presidential run, called for a national "billionaires' tax" and proposed a minimum tax on net worths above $100 million. He also suggested raising corporate tax rates to pre-Trump tax cut levels and argued for new rules on inheritance taxes to prevent the formation of a permanent aristocracy. His proposals align him with the populist left of the Democratic Party, emphasizing the need for an "economic reset for America" as artificial intelligence threatens to further concentrate wealth and power. Newsom believes that the nation's tax code is corrupt and favors an elite few, stating that "money buys influence, and influence rewrites the rules." He also suggested that the U.S. government should own a stake in artificial intelligence companies, proposing a national public equity fund to ensure all Americans benefit from the AI-driven economy. Revenue from his proposed policies could fund worker retraining, universal childcare, free college, and increased healthcare funding.