Gavin Newsom proposes national ‘billionaires’ tax’ after opposing state’s wealth tax initiative

California Governor Gavin Newsom, potentially gearing up for a presidential bid, has proposed a national 'billionaires' tax' on individuals worth over $100 million. This proposal comes a day after a state-level wealth tax measure, which Newsom opposes, qualified for California's November ballot. Newsom argues a federal tax would be more effective, preventing the wealthy from leaving the state to avoid taxation. He also advocated for a return to pre-2017 corporate tax rates, closing offshore loopholes, and rewriting inheritance rules to prevent a 'permanent American aristocracy of inherited wealth.'

The California state measure, a one-time 5% tax on billionaire wealth, was introduced by the healthcare workers union SEIU-UHW and is supported by a coalition despite Newsom's opposition. Billionaires, including Google co-founder Sergey Brin, have funded a nonprofit, Building a Better California, to promote competing ballot initiatives that would nullify the wealth tax measure. Newsom, while understanding the sentiment behind the state's proposal, plans to vote against it due to concerns about revenue allocation primarily to state-funded healthcare.

Separately, Democratic Representative Alexandria Ocasio-Cortez introduced federal 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 of artificial intelligence and its infrastructure development. The article also notes other potential 2028 presidential contenders are beginning to stake out positions on AI.