In this New York Post article, Josh Koehn reports that Gov. Gavin Newsom failed in last-minute negotiations to block a controversial one-time 5% wealth tax on California residents worth over $1 billion from reaching the November ballot.
- The measure, pushed by the SEIU-United Healthcare Workers West union, aims to offset potential federal health care cuts under President Trump and Republicans, forcing voters into one of the nation’s most expensive and divisive ballot fights.
- Newsom, who had vowed to defeat the tax, now faces pressure to expend significant political capital after talks collapsed with union leaders including Dave Regan.
- Critics including the California Chamber of Commerce warn the retroactive wealth tax would accelerate the exodus of billionaires, investors, and startups already fleeing the state, further eroding its tax base.
- California is home to over 200 billionaires with combined wealth exceeding $2 trillion; opponents argue the tax risks driving away those who pay a disproportionate share of the state’s income taxes.
- Tech giants like Sergey Brin, Larry Page, Peter Thiel, Jeff Bezos, and others have already relocated or established ties elsewhere, with Meg Whitman recently selling her Northern California ranch amid the debate.
- Billionaire-backed counter measures, including one requiring audits of new special tax programs, have qualified for the ballot to potentially blunt or block implementation even if the wealth tax passes.
- Newsom has argued the state-only measure would be difficult to enforce, face constitutional challenges, and ultimately cost more revenue through lost taxpayers than it would raise.
- Some labor leaders, including Chris Hannan of the State Building and Construction Trades Council, broke ranks to oppose the tax, fearing it would discourage investment and job-creating developments.
Read the full story:
https://nypost.com/2026/06/25/us-news/gavin-newsom-fails-to-stop-california-billionaire-tax-as-measure-heads-to-november-ballot/
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