Newsom urges a national 'billionaires' tax' while fighting one in California

California Governor Gavin Newsom is advocating for a sweeping national economic overhaul, proposing a "billionaires' tax" and suggesting the U.S. government should hold equity in artificial intelligence companies. These ideas, outlined in a Substack post, align Newsom with the progressive wing of the Democratic Party, emphasizing the need to curb the concentration of wealth and power that he argues undermines democracy.

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It's time for an economic reset for America.

Newsom's call for federal action comes as he actively opposes a state-level ballot initiative in California that would impose a one-time 5% tax on the assets of the state's wealthiest residents. Many liberal groups, including Newsom himself, fear this measure could prompt billionaires to relocate to lower-tax states like Texas or Florida, ultimately shrinking California's tax base. "Wealth is movable, and it shops for the state with the lowest taxes," Newsom stated, arguing the fight against wealth inequality must occur at the federal level.

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You may not be able to pick up and move to Texas or Florida to shelter your income from taxation, but I promise you that billionaires can, and do.

His proposed federal policy includes a minimum tax for individuals with a net worth exceeding $100 million. Newsom also seeks to eliminate the practice of wealthy individuals borrowing against stock portfolios tax-free for personal expenses and wants to reform inheritance taxes to prevent the "permanent American aristocracy of inherited wealth." Additionally, he advocates for restoring corporate tax rates to their pre-Trump cut levels.

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Wealth is movable, and it shops for the state with the lowest taxes. The fight belongs at the federal level, where this broken system was created in the first place.

The governor stressed the urgency of these reforms, particularly in light of artificial intelligence's potential to displace workers and further concentrate wealth. He envisions a "national public equity fund" to ensure all Americans benefit from the AI-driven economy. Revenue from these proposals could fund worker retraining, universal childcare, free college, and expanded healthcare services. Newsom's agenda positions him as a prominent voice on economic populism, setting the stage for potential future presidential aspirations.

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the transfer of wealth among the ultra-wealthy will lock in a permanent American aristocracy of inherited wealth.