California Governor Gavin Newsom released a proposal on Friday morning calling for a national wealth tax on billionaires and a public equity fund that would give Americans ownership in the artificial intelligence industry. The announcement comes after Newsom failed to block a separate California state billionaire tax measure from appearing on the ballot, which he opposes.
Newsom, who is considering a 2028 presidential run, outlined his plan in a Substack post and accompanying video on June 26, 2026. The proposal would require billionaires and individuals with a net worth of at least $100 million to pay a minimum tax and would close tax loopholes for the ultra-wealthy.
Main Developments
The California governor’s national proposal stands in contrast to his opposition to a state-level billionaire tax measure that has qualified for the California ballot. While Newsom opposes the California initiative, he is advocating for a more expansive national approach to taxing extreme wealth.
In his announcement, Newsom addressed economic inequality directly. “When 10% of the people in this country own two-thirds of the wealth, when we have minted the first trillionaire in human history, and yet your wages have stagnated, and your healthcare costs have skyrocketed, something is fundamentally broken,” he stated.
The governor also criticized the structural advantages that have benefited the wealthiest Americans. “Over the decades, the American economy has been engineered for the very top, a story as old as time: Money buys influence, and influence rewrites the rules. Those rewritten rules funnel even more wealth to the few. Under this weight, democracy itself starts to buckle,” Newsom wrote.
A central component of the proposal involves artificial intelligence. Newsom stated, “We need to ensure every American owns a stake in the future being built by AI through a national public equity fund that takes a major stake in the new economy.”
He further emphasized this point: “As artificial intelligence reshapes the country, every American should own a piece of the future it builds.”
What We Know So Far
Newsom’s national proposal includes two main elements. First, it would establish a minimum tax requirement for billionaires and individuals with a net worth of at least $100 million. Second, it would create a national public equity fund designed to give Americans ownership stake in the AI industry.
The California state measure that Newsom opposes would implement a one-time 5% tax on assets of California residents with a net worth exceeding $1.1 billion. Under that proposal, 90% of the revenue generated would go to healthcare, with the remaining 10% split between education and food assistance.
Xavier Becerra, the former U.S. health secretary who is the leading candidate to succeed Newsom as governor, also opposes the California billionaire tax proposal. However, U.S. Representative Ro Khanna supports the California billionaire tax effort. Khanna is also a potential 2028 presidential candidate.
Tom Steyer, a billionaire activist who recently lost a bid for governor, supports the California billionaire tax effort as well.
What Happens Next
The California billionaire tax measure will appear on the ballot for voters to decide. Newsom’s national proposal would require congressional action to implement.
Newsom is considering a run for president in 2028, and this wealth tax proposal positions him on economic issues ahead of a potential campaign. The contrast between his opposition to the state-level tax and support for a national approach may become a point of discussion as political observers watch his next moves.
Important Details
The thresholds for the two proposals differ significantly. Newsom’s national plan would affect those with a net worth of at least $100 million, while the California state measure targets only those with a net worth exceeding $1.1 billion.
The California measure specifies how revenue would be allocated: 90% to healthcare and 10% divided between education and food assistance. Newsom opposes this state measure, though the specific reasons he objects to how the money would be spent have not been fully detailed.
The statistic Newsom cited—that 10% of people own two-thirds of U.S. wealth—serves as a foundation for his argument that the tax system needs restructuring at the national level.
Political Context
The Democratic Party has increasingly focused on wealth disparity as a political issue. Newsom’s proposal places him within this debate while allowing him to differentiate his approach from the California state measure.
Rep. Ro Khanna and Tom Steyer represent voices within the Democratic coalition who support the California state billionaire tax. Their backing of the state measure while Newsom opposes it illustrates the divisions within the party on how best to address wealth inequality.
Xavier Becerra’s opposition to the California measure aligns with Newsom’s position. As the leading candidate to succeed Newsom as governor, Becerra’s stance suggests continuity in how California’s top executive office views the state-level proposal.
Frequently Asked Questions
What is Gavin Newsom proposing for a national wealth tax?
Newsom is proposing a minimum tax on billionaires and those with a net worth of at least $100 million. The plan would also close tax loopholes for the ultra-wealthy and create a national public equity fund for AI industry ownership.
Why does Newsom oppose the California billionaire tax but support a national one?
Newsom opposes the California state billionaire tax measure while supporting his more expansive national plan. His stated concerns relate to how the California tax money would be spent, though specific objections have not been fully detailed.
What would the California billionaire tax do?
The California initiative would implement a one-time 5% tax on assets of California residents with a net worth exceeding $1.1 billion. Of the revenue generated, 90% would go to healthcare and 10% would be split between education and food assistance.
Is Gavin Newsom running for president?
Newsom is considering a 2028 presidential run but has not officially announced a campaign.
Who supports the California billionaire tax measure?
U.S. Representative Ro Khanna and billionaire activist Tom Steyer support the California billionaire tax effort. Ro Khanna is also a potential 2028 presidential candidate, and Steyer recently lost a bid for governor.
Newsom’s proposal arrives at a moment when debates over taxation of extreme wealth continue to shape political conversations. The California governor’s decision to oppose a state measure while advocating for a national approach reflects the complexities of addressing wealth inequality through tax policy at different levels of government.
