Story perspectives

Newsom Proposes Federal Billionaire Tax, Rejects State Levy

6/28/2026

Summary

Story summary

Governor Gavin Newsom announced a federal billionaire tax that would levy a minimum charge on net worths above $100 million.
He opposed California’s one-time 5% billionaire tax, saying it would drive rich residents away, and proposed equity stakes in AI firms and raise inheritance and corporate taxes to fund worker retraining, childcare and health care.
Rep. Ro Khanna called Newsom’s claim that billionaires will flee California “hogwash” and cited record venture-capital inflows.

History

Historical Context

In 1913, after the Sixteenth Amendment, President Woodrow Wilson signed the Revenue Act, which cut tariffs to about 26% and imposed a progressive income tax affecting three percent of Americans, with a top rate of 7% on incomes over $500,000. Governor Gavin Newsom’s 2024 billionaire-tax proposal revives the same debate over taxing the wealthiest, echoing the shift from tariff-based to income-based revenue.

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Story summary

Governor Gavin Newsom announced a federal billionaire tax that would levy a minimum charge on net worths above $100 million.
He opposed California’s one-time 5% billionaire tax, saying it would drive rich residents away, and proposed equity stakes in AI firms and raise inheritance and corporate taxes to fund worker retraining, childcare and health care.
Rep. Ro Khanna called Newsom’s claim that billionaires will flee California “hogwash” and cited record venture-capital inflows.

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