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California Governor Gavin Newsom is urging voters to reject the California Billionaire Tax Act — a one-time, 5% emergency levy on assets above $1 billion that was officially added to the November ballot — arguing that taxing mobile wealth at the state level will accelerate the departure of high-net-worth individuals and investment capital from the state.
His opposition puts him at odds with the measure's sponsor, Billionaire Tax Now, backed by the Service Employees International Union – United Healthcare Workers West, and with Senator Bernie Sanders, who called the tax "reasonable and necessary." In a notable pivot, Newsom responded to the ballot confirmation by calling instead for a national billionaire tax and what he described as "a new social contract." A State-Level Tax That Tests Capital Mobility The California Billionaire Tax Act would impose a one-time "emergency" 5% tax on Californians whose assets exceed $1 billion.
Billionaire Tax Now argues the measure would prevent the collapse of California healthcare and fund K-14 education and state food assistance programs.
Sanders, aligning with the union's position, framed it as a response to "unprecedented and growing wealth consolidation and income inequality." Newsom's objection rests on a straightforward economic argument: billionaire wealth is portable.
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