"Gavin Newsom's stance against California's proposed " Billionaire Tax Act " has exposed a rift in the Democratic Party, with the erstwhile progressive governor taking a stance on the side of wealth and implicitly against the wing of his party that has claimed billionaires shouldn't even exist. Where New York City Mayor Zohran Mamdani has built a national profile off an unabashed "tax the rich" message, Newsom is staking out an explicitly anti-wealth-tax position, an important moment"
"The fight centers on the 2026 Billionaire Tax Act, a ballot initiative that would impose a one-time 5% levy on the assets of anyone in California worth more than $1 billion, affecting roughly 200 ultrawealthy residents. Unlike an income tax, the measure would require billionaires to tally up their total wealth and cut a big check to Sacramento if voters approve it in November."
"Labor unions and health advocates backing the measure promise tens of billions of dollars for schools, food assistance, and health programs in a state with some of the country's starkest inequality. Supporters frame it as a one-time recalibration of the social contract, not an annual raid on the rich, and argue that the political energy behind it could serve as a template for other blue states wrestling with similar divides between wealthy coastal enclaves and working-class communities."
Gavin Newsom opposes the 2026 Billionaire Tax Act, arguing it is bad economics and warning it already prompts billionaire departures from California. The ballot initiative would impose a one-time 5% levy on assets above $1 billion, affecting roughly 200 residents, requiring billionaires to calculate total wealth and remit payment if approved. Labor unions and health advocates back the measure, promising tens of billions for schools, food assistance, and health programs, framing it as a one-time recalibration of the social contract rather than an annual tax. Newsom has vowed the initiative "will be defeated," setting him at odds with unions and national progressives.
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