Hypocrisy Alert: Governor Blocks CA, Pushes DC Tax

June 28, 2026

California governor speaking at a press conference about insulin pricing

Gavin Newsom is demanding a sweeping new federal “billionaires tax” that would rewrite America’s economy in the name of an “economic reset.”

Story Snapshot

Newsom wants a national tax on anyone worth over $100 million and higher corporate taxes.
He calls this plan an “economic reset” to “save democracy” by attacking concentrated wealth.^[2]^[5]
At the same time, he opposes a California wealth tax on billionaires in his own state.^[2]^[5]^[6]^[8]
His idea would grow federal power over inheritance, business, and artificial intelligence profits.^[5]^[8]

Newsom’s “Economic Reset” Targets Wealth, Business, And Inheritance

California Governor Gavin Newsom has launched a national push for what he calls a “billionaires’ tax” and a “new social compact,” arguing that America’s economic system is “fundamentally broken.” In a Substack essay and video, he says 10 percent of Americans now own about two-thirds of the nation’s wealth, while wages stay flat and costs climb.^[2]^[3]^[4]^[8] His answer is simple in his view: a federal “true minimum tax on billionaires,” higher corporate taxes, and tougher inheritance rules.^[2]^[3]^[5]^[8]

Newsom’s proposal would apply to anyone with a net worth above $100 million, not just classic billionaires.^[5] He describes it as a “modern Buffett Rule” that would make sure people at the very top pay at least the same tax rate their workers pay, instead of using complex strategies to cut their bills.^[2]^[6]^[8] He also calls for raising corporate tax rates back to where they were before President Donald Trump’s 2017 tax cuts, which lowered the federal burden on businesses and helped fuel investment and job growth.^[2]^[3]^[5]^[6]

Closing Loopholes Or Empowering The Tax State?

To sell his plan, Newsom focuses on what he calls a “tax-free lifestyle loan” strategy. He argues that the very rich borrow against their stock portfolios, live large on that cash, report little or no taxable income, and then pass those appreciated assets to their children without ever paying tax on the gains.^[1]^[3]^[4]^[8] In his words, this loophole exists “only for the extremely wealthy” and should be closed to prevent a “permanent American aristocracy” of inherited wealth, especially as an estimated $124 trillion is set to move between generations.^[3]^[5]

Newsom also wants to rewrite federal inheritance rules so that this huge transfer does not, in his words, “lock in a permanent American aristocracy of inherited wealth.”^[3]^[5] That sounds popular on the surface, but it means much more federal reach into how families pass down businesses, farms, and savings. Past wealth tax plans, like the national proposal backed by Senator Bernie Sanders and Representative Ro Khanna, have been criticized for raising far less money than promised once people change their behavior to avoid them.^[22] Conservative economists warn that these kinds of taxes can punish saving, shrink investment, and push innovators and job creators overseas.^[22]

AI “Public Equity Fund” Would Give Washington A Stake In The Future

Newsom’s blueprint does not stop with tax hikes. He wants the federal government to take “a major stake in the new economy” by creating a national public equity fund tied to artificial intelligence companies.^[5]^[8] He argues that as automation and artificial intelligence reshape work, “every American should own a piece of the future” through this fund, which would channel money into free college, universal child care, worker retraining, and expanded health care.^[1]^[5]^[8] In practice, this would give Washington direct ownership interests across a wide swath of the technology sector.

For conservatives, this should raise alarms about government overreach and political control over cutting-edge industries. When the state owns slices of private firms, it gains leverage over what they build, who they hire, and what views they promote. That threatens free markets, innovation, and even free speech online. It also risks turning artificial intelligence from a powerful tool for growth into another political slush fund, using taxpayers’ money and forced “equity” stakes to expand permanent federal programs and dependency.^[5]^[22]

Newsom Fights Taxes At Home While Pushing Them Nationally

Newsom’s call for a federal billionaires tax comes just as a one-time 5 percent California wealth tax on billionaires has qualified for the state’s November ballot.^[5]^[17]^[19] That measure would tax net worth above $1 billion to fund health care, food assistance, and public education in California.^[17]^[19] Newsom says he will vote no and is actively opposing it, arguing that a state wealth tax would hurt the economy and drive rich residents to move to other states.^[2]^[5]^[8] He writes that “wealth is movable, and it shops for the state with the lowest taxes,” so the fight must happen at the federal level.^[6]^[15]

Gavin Newsom Calls for ‘National Billionaires Tax’ to Trigger ‘Economic Reset’ * The Gateway Pundit * by Michael Schwarz, The Western Journal https://t.co/jdfPufhItG

— rightwinger65 (@Rightwinger65) June 27, 2026

This split position is drawing criticism from both sides. Supporters of the California tax see hypocrisy in a governor who says the wealthy should pay more while blocking a tax that would hit his own state’s billionaires.^[5]^[7]^[21] Meanwhile, many conservatives note that his national plan still depends on Congress, where he has no direct authority, and offers no clear tax rate or enforcement details. That vagueness makes his proposal look more like a 2028 presidential campaign message than a serious reform, while it still signals a broader push to grow federal power over wealth, business, and family inheritance.^[2]^[5]^[15]