Story perspectives

Gov't Negotiates Withdrawal of $100B Billionaire Tax

6/20/2026

Left

Newsom Negotiates Withdrawal

The health-care workers union proposed a reduced 2 % billionaire tax to keep the measure on the ballot.
Governor Gavin Newsom and Democratic leaders are negotiating to withdraw the billionaire tax initiative before the June 25 certification deadline.
The proposal would levy a one-time 5 % tax on Californians with net worth over $1 billion.
Measure would raise $100 billion to offset President Donald Trump’s Medicaid cuts and prevent hospital closures.

Right

Newsom Withdraws Tax

Florida Governor Ron DeSantis warned the billionaire tax could set a precedent for broader government confiscation of property.
Governor Gavin Newsom and Democratic leaders are negotiating to withdraw the billionaire tax initiative before the June 25 certification deadline.
Tech billionaire Sergey Brin contributed $82 million to a committee backing rival measures to block the tax.
Dave Regan accused Newsom of aligning with billionaire class to fund a 2028 presidential run.

History

Historical Context

During Bill Clinton’s 1993 budget, Congress raised taxes on high-income earners to cut deficits, and in 1997 the capital-gains rate fell to 20 percent. California’s 2024 billionaire tax, promoted by Governor Gavin Newsom and opposed by Governor Ron DeSantis, revives that federal push to tax the wealthiest, echoing Clinton-era fiscal reforms.

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Newsom Negotiates Withdrawal

The health-care workers union proposed a reduced 2 % billionaire tax to keep the measure on the ballot.
Governor Gavin Newsom and Democratic leaders are negotiating to withdraw the billionaire tax initiative before the June 25 certification deadline.
The proposal would levy a one-time 5 % tax on Californians with net worth over $1 billion.
Measure would raise $100 billion to offset President Donald Trump’s Medicaid cuts and prevent hospital closures.

1 / 3