NewsKQED NewsOctober 26, 2026San Francisco County
The Political Calculus Behind Newsom’s Opposition to California’s Billionaire Tax
Photo: KQED News
Governor Gavin Newsom opposes Proposition 40, a November ballot measure that would impose a 5% wealth tax on California's billionaires to fund healthcare. While Newsom frequently criticizes national wealth inequality, he argues that a state-level wealth tax would drive wealthy individuals and businesses out of California and ultimately harm the state budget.
Read the full story at KQED NewsWhy It Matters
The measure directly involves a one-time 5% on approximately 200 California residents, with revenue earmarked to backfill federal cuts affecting nearly 15 million low-income state residents.
Key Facts
- Governor Gavin Newsom publicly opposes Proposition 40 despite his frequent criticisms of national wealth inequality.
- Proposition 40 is a November ballot measure proposed by a healthcare union.
- The measure would impose a one-time, 5% tax on the overall wealth of approximately 200 California billionaires.
- Revenue from the proposed tax is intended to backfill federal budget cuts to Medicaid.
- Medicaid provides health insurance to nearly 15 million Californians.
- Newsom argues that a wealth tax should be implemented at the national level rather than the state level.
- Opponents of the state tax argue it will cause wealthy entrepreneurs and businesses to relocate to states with lower tax burdens, ultimately hurting the state budget.
Who's Mentioned
OrganizationMedicaid“Federal program providing health insurance to low-income Americans”locationCalifornia“State where the ballot measure and policy debate are taking place”otherProposition 40“November ballot measure proposing a wealth tax on billionaires”PersonGavin Newsom“Governor of California opposing Proposition 40”