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Newsom, Warren Push Taxes on Ultra-Rich, Close Loophole

7/2/2026

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Summary

Story summary

Governor Gavin Newsom urged Congress to close the “buy, borrow, die” loophole for ultra-rich investors.
Tax Policy Center says the strategy accounts for 1%–2% of top-1% income and that Senator Elizabeth Warren’s bill would tax net worth over $50 million at 2%, levy 1% on billionaires, and add a 40% exit tax on renunciants.
Michigan and Yale Law School professors propose raising capital-gains rates to generate revenue without a wealth tax.

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Story summary

Governor Gavin Newsom urged Congress to close the “buy, borrow, die” loophole for ultra-rich investors.
Tax Policy Center says the strategy accounts for 1%–2% of top-1% income and that Senator Elizabeth Warren’s bill would tax net worth over $50 million at 2%, levy 1% on billionaires, and add a 40% exit tax on renunciants.
Michigan and Yale Law School professors propose raising capital-gains rates to generate revenue without a wealth tax.