'Newsom Does Not Want to Tax Billionaires,' Say Campaigners, 'But Wants You to Think He Does'
"Pretending to propose his own national solution is clearly a cynical smoke screen to let California billionaires off the hook," argues the Billionaire Tax Now campaign as it seeks to counter "5 tricks" being deployed by Gov. Gavin Newsom and his allies.
Campaigners behind the one-time 5% billionaires wealth tax in California are calling out what they describe as trickery and deception by Democratic Gov. Gavin Newsom, who on Friday released a proposal for a national billionaire's income tax even as he actively opposes the effort to tax the wealth of billionaires in the state that he and his party currently control.
"Newsom does not want to tax billionaires," said the Billionaire Tax Now campaign in a statement, "but he wants you to think he does."
As Common Dreams reported Friday, critics of Newsom warn that the governor thinks "he can fool everyone" with his proposal for a national tax on the income of billionaires while simultaneously opposing a wealth tax headed for a referendum vote in November designed to fill a massive healthcare funding gap in the state created by the budget bill passed by Republicans and signed by President Donald Trump last year.
While the so-called "One, Big Beautiful Bill" offered another windfall tax giveaway to super-wealthy individuals and corporations, it eviscerated funding for healthcare and other key social programs nationwide.
The Friday statement from the coalition behind the campaign, headed by SEIU—United Health Wealth, details "5 tricks" that Newsom has already deployed in order to fool voters about the wealth tax in California while concealing what they say are "his real motivations: to continue giving billionaires tax breaks at the expense of working people."
According to the group:
TRICK 1: Pretend to take on billionaires while really giving them a pass.
Over his many months of plainly attempting to sink the California billionaire tax, Governor Newsom has made it clear that he is more interested in protecting billionaires than working people. A federal billionaire tax has already been proposed by US Senator Bernie Sanders and Representative Ro Khanna—and while you don’t need to be a political insider to know it would require a profound reshaping of Congress to pass that bill, Newsom has nonetheless failed to endorse it.
TRICK 2: Conveniently say that a federal, not state-based solution is the best way forward on this issue—despite having supported state-based policy solutions in the past.
Pretending to propose his own national solution is clearly a cynical smoke screen to let California billionaires off the hook. It’s just a PR tactic to give himself more cover to oppose the California Billionaire Tax. The Governor has supported state-based solutions to federally-created policy problems in the past—just conveniently not this state-based solution, which would involve a 5% tax on about 200 Californian billionaires who hold $2.2 trillion in wealth to save lives and keep hospitals open.
TRICK 3: Attempt to divide support by saying the California Billionaire Tax is bad policy for not fixing every problem in the state.
It’s pretty simple: the California Billionaire Tax is a direct response to the healthcare cuts facing our state, so the funding goes to healthcare. 90% of funds will prevent ER and hospital closures, and 10% will go toward food assistance and public education.
No, the funding will not go toward housing, 911 operators, and other public services the Governor listed out to try to generate additional opposition—just the massive $100 billion healthcare crisis that is putting patient lives at risk. The fact that this measure doesn’t fix every problem in the Governor’s budget is a problem for the Governor, not a problem with the proposal itself.
TRICK 4: Spread misinformation about the California Billionaire Tax’s impact on Planned Parenthood.
The Governor is hoping you don’t know that the massive federal healthcare cuts in Trump’s “Big, Beautiful Bill” gutted funding for California’s Planned Parenthood clinics and that the California Billionaire Tax is the only viable way to generate the funding needed to save this critical reproductive healthcare. Luckily, frontline healthcare workers, including those who work at Planned Parenthood clinics, along with actual Planned Parenthood patients have been hard at work spreading the truth to voters across the state.
TRICK 5: Falsely claim that “one stakeholder” is driving the California Billionaire Tax.
Governor Newsom continues desperately trying to make the California Billionaire Tax sound fringe, when in fact voters consistently support the tax by double-digit margins. The Billionaire Tax Now coalition has a growing army of more than 5,000 volunteers, and submitted over 1.6 million signatures—more than double the number needed to qualify for the ballot. The tax is supported by elected officials including US Senator Bernie Sanders Representative Ro Khanna, and Senator Chris Murphy, and community and labor groups including Teamsters California, AFSCME California, CIR, UNITE HERE Local 11 and Local 30, AFT Local 1521, Oxfam America, Our Revolution, CA, Color of Change, and Democratic Socialists of America–CA. Does that sound like “one stakeholder”?
The launch of Newsom's proposal for a national income tax, his team acknowledged, comes as the governor considers a run for president in 2028.
Citing the threat of capital flight and billionaires fleeing California for states with friendlier tax codes, Newsom argues that the fight for a tax on the super-rich "belongs at the federal level, where this broken system was created in the first place."
However, as the campaign behind the state-level tax points out and studies have shown, the mythical threat of the wealthy packing their bags has been shown to be largely that—threats and a myth.
Nadia Rahman, an activist and organizer in San Francisco, was among those urging people not to be duped by the Newsom's position on the California ballot initiative.
"Do not be fooled," Rahman warned. "Newsom is an avowed incrementalist pitching a “national billionaires tax” to have something to deflect to when he runs for president and is questioned about why he worked so hard to kill the wealth tax in his home state of California in his final act as Governor."
