Newsom Pushes National Billionaire Tax While Opposing California's Own Wealth Levy

California Governor Gavin Newsom, 58, is rolling out what looks like an early 2028 presidential campaign platform, calling for a federal minimum tax on billionaires modeled on the so-called Buffett Rule — requiring the ultra-wealthy to pay at least the same effective tax rate as their own employees. The proposal, unveiled via Substack and social media, is part of a broader economic agenda Newsom is branding an 'economic reset for America,' targeted at working-class voters he says have been failed by a tax code rigged for the wealthy.

Among Newsom's specific proposals: closing the 'buy, borrow, die' loophole, in which billionaires borrow against appreciating assets like stocks to avoid triggering taxable income events; eliminating other exemptions he says constitute a private tax system for the ultra-rich; reverting corporate tax rates to pre-2017 levels before the Trump-era tax cuts; and reforming inheritance rules. He also floated a novel idea — a 'national public equity fund' to give every American a stake in AI-driven economic growth.

In a notable contradiction, Newsom simultaneously reiterated his opposition to a California-specific billionaire wealth tax — a one-time 5% levy on total billionaire wealth — that is heading to the state ballot in November after the healthcare workers' union backing it refused to pull the measure by a Thursday deadline. Newsom's argument: state-level wealth taxes are strategically flawed because billionaires can and do relocate to low-tax states like Texas or Florida, draining revenue while funding nothing. The federal level, he argues, is the only venue where such a tax can actually work.

Newsom has already acknowledged he is considering a 2028 White House run, including earlier this month when he publicly accused President Trump of directing the Justice Department to investigate him and his wife due to his presidential ambitions. His economic messaging closely parallels proposals from fellow California Democrat Rep. Ro Khanna, who is also eyeing the presidency, suggesting the party's next generation of leaders is converging on a populist economic lane heading into the next cycle.