Gavin Newsom opposes a California wealth tax. He's proposing a national tax

- California Governor Gavin Newsom has historically blocked a proposed "wealth tax" targeting the state's billionaires, but recently put forward a version that would apply at the federal level instead.<br/><br/>- The distinction matters because California already has the nation's highest state income tax rate, and Newsom worries a state-level wealth tax would drive more wealthy residents and businesses out of California — an ongoing "exodus" that erodes the state's tax base.<br/><br/>- A wealth tax taxes net worth (assets like stocks, real estate, art minus debts) annually, rather than taxing earnings. No US state currently has one, though several countries do.<br/><br/>- Newsom's federal proposal targets unrealized capital gains (increases in asset value that haven't been sold yet) for people with over $100 million in assets — an idea that would require an act of Congress and faces steep political and constitutional hurdles.<br/><br/>- The shift reflects Newsom's positioning as a potential 2028 presidential candidate: supporting progressive tax ideas nationally without risking California's competitiveness or his own re-election at home.