California Governor Gavin Newsom said he is working to stop a proposed wealth tax on billionaires, predicting the union‑backed ballot measure will fail if it reaches voters.
Newsom told The New York Times that “this will be defeated—there’s no question in my mind,” adding that he would take steps to protect the state’s economy and tax base.
The ballot initiative would impose a one‑time 5% tax on Californians with a net worth above $1 billion. The tax would apply retroactively if approved in November, raising alarms among wealthy residents.
Newsom said he has held meetings with leaders of the Service Employees International Union–United Healthcare Workers (SEIU‑UHW), which is leading the tax push. He described the talks as an attempt to negotiate a compromise and convince the union to drop the proposal.
Some billionaires have already begun moving assets and business entities out of California. According to reporting by The New York Times, Google co‑founders Larry Page and Sergey Brin relocated or closed 15 California‑based LLCs shortly before the end of last year.
Palantir co‑founder Peter Thiel has also opened an investment office in Miami and donated $3 million to a campaign opposing the wealth tax, according to the same report.
Union leaders argue the tax is needed to help fund public health care, especially as federal health subsidies expired earlier this year. SEIU‑UHW officials say the proposal targets only a small number of ultra‑wealthy residents.
For the initiative to appear on the ballot, supporters must gather about 900,000 voter signatures. Newsom has previously blocked similar tax efforts through veto threats, but a ballot initiative would bypass his authority.
The fight over the billionaire tax adds to growing tensions in California over tax policy, business departures, and long‑term budget stability.
