Newsom rejects scaled-back billionaires tax as ballot fight looms
California Gov. Gavin Newsom’s office said Friday that it remains opposed to a proposed tax on California billionaires, even after the labor union backing the measure revised its plan following its qualification for the November ballot.
TL;DR
- California Governor Gavin Newsom is opposed to a proposed tax on billionaires.
- The proposed tax is backed by the SEIU-United Healthcare Workers West.
- The measure, now qualified for the November ballot, would impose a one-time 2% tax on individuals with net worth above $1 billion.
- Newsom argues the tax would weaken California's economy and reduce future revenue.
- The union offered to lower the tax rate if Newsom agreed to support it, but he rejected this revised approach.
- The tax aims to raise approximately $100 billion to offset federal cuts to healthcare programs for low-income residents, with additional funds for food assistance and education.
- Critics, including those in the tech sector, fear the tax could drive wealthy residents and investors out of the state, disrupting businesses and discouraging investment.
- Other state lawmakers are pursuing revenue through alternative means, such as extending a tax on healthcare providers.