SACRAMENTO — California Gov. Gavin Newsom proposed a national minimum tax on billionaires as part of a broader federal economic agenda, outlining the plan in a Substack essay published Friday.
Newsom called for a "true minimum tax" on individuals with a net worth above $100 million to ensure they pay at least the same effective tax rate as their workers. He also advocated closing loopholes that allow the wealthy to borrow against stock portfolios tax-free to fund lifestyles, and proposed a federal public equity fund giving Americans a stake in artificial intelligence-driven wealth creation.
The Democratic governor, who is term-limited and will leave office in January 2027, framed the initiative as the start of an "economic reset for America." Aides described the proposal as tied to his consideration of a 2028 presidential bid.
Newsom's national push comes as he opposes a California ballot measure that would impose a one-time 5% tax on the assets of the state's billionaires as of Jan. 1, 2026. The measure, which qualified for the November ballot, aims to fund health care, education and food assistance programs. Newsom has said he will vote against it, arguing a state-only approach risks driving wealthy residents and businesses out of California.
"This is not something that works state by state," Newsom said in remarks accompanying the proposal. He has described the California initiative as "really damaging to the state."
The governor's office did not immediately respond to a request for further comment. No immediate reaction was available from the White House or congressional leaders.
Wealth inequality has been a flashpoint in U.S. politics, with proponents of higher taxes on the rich citing data showing the top 10% of Americans hold a significant share of national wealth. Critics argue such measures could discourage investment and economic growth, and point to challenges in valuing illiquid assets and potential capital flight.
Newsom's proposal echoes elements of past national discussions, including the so-called Buffett Rule, which seeks to ensure high-income individuals pay taxes at rates comparable to or higher than middle-class workers. Details on implementation, revenue estimates or legislative strategy were not specified in the initial announcement.
The plan arrives amid ongoing federal budget debates and as Democrats position themselves ahead of future elections. Newsom has not formally declared a presidential candidacy.
As of Friday, the California wealth tax measure remains on the November ballot, while Newsom's national proposal represents an early policy signal rather than formal legislation.
