Gavin Newsom proposes national 'billionaires' tax' after opposing state's wealth tax initiative - ABC News
California Governor Gavin Newsom has proposed a national 'billionaires' tax' and a national public equity fund for economic gains from artificial intelligence, while also opposing a state wealth tax. Separately, Democratic Rep. Alexandria Ocasio-Cortez introduced legislation for a nationwide moratorium on AI data center construction to address economic, environmental, and safety impacts. The article primarily focuses on tax policy and political positioning.
California Governor Gavin Newsom has proposed a national "billionaires' tax" and a national public equity fund, positioning himself for a possible presidential bid while also opposing a state wealth tax measure that qualified for California's November ballot. Newsom's federal proposal calls for a minimum tax rate on Americans worth over $100 million, arguing it would prevent billionaires from avoiding state-level taxes by relocating.
The state's proposed 5% wealth tax, championed by the SEIU-UHW healthcare workers union, has garnered significant opposition, including from Newsom and California Democratic gubernatorial nominee Xavier Becerra. This opposition has attracted substantial funding, notably $80 million from Google co-founder Sergey Brin, to groups promoting rival ballot initiatives designed to nullify the billionaire tax. Newsom attributes his opposition to the state measure to concerns about wealth mobility and the allocation of tax revenue solely to healthcare services.
Separately, in the broader discussion of potential 2028 presidential contenders, Democratic Rep. Alexandria Ocasio-Cortez has introduced legislation proposing a nationwide moratorium on AI data center construction. This temporary prohibition aims to allow Congress time to address the economic, environmental, and safety impacts associated with the rapid expansion of artificial intelligence infrastructure.