Newsom Breaks With Progressives Over High-Stakes California Billionaire Tax Plan
A sweeping proposal to tax California’s wealthiest residents is facing a major obstacle from inside the state’s Democratic leadership: Gov. Gavin Newsom. According to the New York Post , the campaign behind the tax plan…
A sweeping proposal to tax California’s wealthiest residents is facing a major obstacle from inside the state’s Democratic leadership: Gov. Gavin Newsom.
According to the New York Post, the campaign behind the tax plan is pushing a one-time, 5% levy on roughly 200 Californians worth more than $1 billion.
Backers say the measure is designed to “replace lost federal dollars and protect essential services,” particularly in health care and education.
But Newsom, according to political adviser Dan Newman, does not support the effort.
If approved, the tax would generate enormous bills for some of California’s most prominent tech figures.
Meta CEO Mark Zuckerberg could face a charge exceeding $12 billion, while Nvidia CEO Jensen Huang’s tab could run around $8 billion.
Supporters estimate the initiative would raise about $100 billion over five years.
The measure is being championed by progressive organizations, including SEIU United Healthcare Workers West, St. John’s Community Health in Los Angeles, and former U.S. Secretary of Labor Robert Reich.
They argue the tax is urgently needed following federal cuts to Medi-Cal and other critical health programs.
But critics warn that targeting billionaires could further accelerate the state’s exodus of wealthy residents, potentially deepening California’s already severe budget deficit.
The state has struggled with population decline in recent years as high taxes, soaring living costs, and burdensome regulations drive out residents and companies.
Suzanne Jimenez, chief of staff at SEIU-UHW, expressed confidence that Newsom and other skeptics may eventually come around.
“California’s front-line health care workers welcome and look forward to a good-faith dialogue with our governor around these critical issues as the November 2026 vote draws closer,” Jimenez said.
Newsom has consistently resisted broad tax increases, particularly after California faced a staggering $44 billion deficit last year. His stance aligns with concerns about maintaining the state’s fragile economic climate.
His political future also looms large in the debate. Newsom is widely expected to consider a 2028 presidential campaign, with a decision likely after the 2026 midterm elections. Should he run, he will rely heavily on donors from Hollywood and Silicon Valley—many of whom are billionaires themselves.
The governor has long-standing connections to major power players in tech and entertainment, receiving past support from figures such as Netflix co-founder Reed Hastings, philanthropist Laurene Powell Jobs, and former Google CEO Eric Schmidt. His early political rise was aided by Gordon Getty, heir to the Getty oil fortune.
Some of those donors have already signaled enthusiasm for a potential national campaign.
“He’s a fighter, that’s what we need!” one Hollywood producer told Deadline. Another donor suggested “big checks are being written,” with more ready to jump in once Newsom makes his intentions official.
Supporters of the so-called “2026 Billionaire tax Act” have filed paperwork with the California Attorney General’s Office and now face the task of gathering 874,641 signatures to qualify the measure for the November 2026 ballot.