California Gov. Gavin Newsom called for a national minimum tax on billionaires and Americans worth more than $100 million, framing the proposal as part of an “economic reset for America” as he signals a potential 2028 presidential bid.
In a Substack post and video published on Friday, Newsom backed what he described as “a true minimum tax on billionaires” modeled on the Buffett Rule, which would ensure the ultra-wealthy pay at least the same rate as their own workers. The proposal came a day after California’s state-level wealth tax measure—which Newsom opposes—qualified for the November ballot despite his efforts to block it.
Newsom’s plan targets the tax strategies that allow the wealthy to minimize their obligations. He called for closing what he terms “tax-free lifestyle loans,” a controversial tactic where people borrow against their stocks and other assets to lower their taxable income, avoiding capital gains taxes entirely. He also proposed rewriting federal inheritance rules and returning corporate tax rates to pre-2017 levels, before the major tax cut Trump signed during his first term.
The governor emphasized that a federal approach is necessary because wealth is mobile. “You may not be able to pick up and move to Texas or Florida to shelter your income from taxation, but I promise you that billionaires can, and do,” Newsom wrote. “The fight to make the wealthiest Americans pay more in taxes is not one we should be fighting state by state.”
Why Newsom Opposes California’s Own Wealth Tax
Newsom’s federal proposal stands in stark contrast to his vocal opposition to California’s ballot measure, which would impose a one-time 5% tax on the wealth of roughly 250 billionaires in the state. The California measure, pushed by the healthcare workers union SEIU-UHW, would fund health care, food assistance, and other programs. Newsom says it would drive wealth out of the state and fail to address key priorities.
“We can’t let a single advocacy organization, however well-intentioned, write the state’s tax code on its own terms,” Newsom wrote. The measure advanced after the union refused to withdraw it by a June deadline, despite Newsom’s opposition and a counter-offer from the union to lower the rate from 5% to 2%.
Political analysts view Newsom’s national proposal as strategic positioning. UC Berkeley political science professor Dan Schnur called it “savvy political positioning,” allowing Newsom to enter the 2028 field without appearing opposed to taxing the wealthy. “He’s not against taxing billionaires, he just has a different way of doing it,” Schnur said. “He now has an answer for progressive Democrats, whether in California or in early primary states, as to why he didn’t support the ballot measure.”
Beyond the tax provisions, Newsom’s agenda includes creating a “national public equity fund” to ensure “every American owns a stake in the future being built by AI.” The fund would support universal child care, free higher education, career training, and health care for workers displaced by automation. He framed the proposal around a larger concern: over the next two decades, roughly $124 trillion in wealth will transfer between generations, and without action, “that transfer of wealth among the ultra-wealthy will lock in a permanent American aristocracy of inherited wealth,” Newsom wrote.
The proposal echoes similar calls from other potential 2028 contenders. California Democratic Rep. Ro Khanna, who is also considering a presidential run, joined Vermont independent Sen. Bernie Sanders—both of whom supported California’s state initiative—in introducing legislation for an annual 5% wealth tax on billionaires nationwide.
Sources
- CNBC — Newsom’s statement on a true minimum tax on billionaires, tax-free lifestyle loans, and the “economic reset for America”
- ABC News — Details of Newsom’s federal minimum tax proposal targeting those worth more than $100 million, his opposition to California’s state measure, and the $124 trillion wealth transfer figure
- The Hill — Newsom’s framing of the proposal as an economic reset and his call for higher estate and corporate taxes
