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Newsom Swaps CA Levy for Billionaire Minimum Tax, AI Fund

6/26/2026

25 2 Full Breakdown

Summary

Story summary

Governor Gavin Newsom shifted his tax agenda on June 26, 2026, from a California ballot measure to a nationwide billionaire minimum tax and an AI public equity fund.
Newsom rejected California’s one-time 5% levy on assets over $1.1 billion, saying it conflicted with his goals.
He urged ending tax-free lifestyle loans, restoring 2017 corporate tax rates, and rewriting inheritance tax rules, adding that the AI fund would give Americans a stake.

History

Historical Context

After President Donald Trump signed the 2017 Tax Cuts and Jobs Act, which cut the corporate rate from 35% to 21% and slashed corporate receipts by 31% in FY 2018, states grappled with revenue gaps. On June 26 2026 Governor Gavin Newsom proposed swapping California’s wealth levy for a federal billionaire minimum tax, echoing the 2017 effort to reverse corporate-rate cuts.

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Story summary

Governor Gavin Newsom shifted his tax agenda on June 26, 2026, from a California ballot measure to a nationwide billionaire minimum tax and an AI public equity fund.
Newsom rejected California’s one-time 5% levy on assets over $1.1 billion, saying it conflicted with his goals.
He urged ending tax-free lifestyle loans, restoring 2017 corporate tax rates, and rewriting inheritance tax rules, adding that the AI fund would give Americans a stake.

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