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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWSJ: California's Billionaire Tax Kicks Off a Democratic Civil War
Californias proposed billionaire tax will appear before voters in November, teeing up a fight among Democrats over wealth, affordability and the future of their party as they push to take back Congress in this years midterms.
A deadline to withdraw the controversial ballot initiative came and went Thursday after fruitless efforts by Gov. Gavin Newsom and allies to persuade the union behind the tax to withdraw it. Also headed for the ballot: a pair of initiatives from a committee backed by billionaires including Sergey Brin that could undercut the one-time, 5% wealth levy.
The tax, proposed by a healthcare workers union, seeks to raise $100 billion over five years to offset cuts to Medicaid and other federal programs under the big, beautiful tax-and-spending bill that President Trump signed into law last year. The union late Thursday confirmed it didnt pull the ballot measure before the window to do so expired.
Were going to the ballot, said Dave Regan, president of the Service Employees International Union-United Healthcare Workers West. Weve now crossed the deadline.
https://www.wsj.com/politics/policy/californias-billionaire-tax-kicks-off-a-democratic-civil-war-fa94ba2e
Scrivener7
(60,379 posts)TheProle
(4,216 posts)The system Americas founders built was designed to prevent the concentration of power in a few hands, but we have allowed that concentration to happen anyway, slowly, in plain sight, over decades, Newsom writes. We can reverse it together, as a country.
It is extremely early in the presidential campaign cycle for a policy proposal but comes as Democrats continue to embrace economic populism and moves against the wealthy. It also comes as California voters in November will decide on a billionaires tax after the governor and opponents of the tax late Thursday failed to reach a deal to keep it off the ballot.
Newsom, who is term-limited in California and will leave office in January 2027, lays out his proposal in a Substack post that went live on Friday morning, calling for a minimum tax on anyone worth more than $100 million so that they pay at least the same rate, rather than less, than the average American worker who doesnt have loopholes and other maneuvers to benefit from.
https://www.cnn.com/2026/06/26/politics/gavin-newsom-billionaire-tax-california
Fiendish Thingy
(24,473 posts)So, golly gee willikers, whaddya gonna do?
Even if such a tax were included in a reconciliation bill, Newsom knows the techbros would invest billions buying enough NO votes so the tax would never pass, so his proposal for a national tax is empty, meaningless rhetoric.
A referendum bypasses the techbros, who cant buy off the voters.
Sympthsical
(11,287 posts)A national proposal is dead in the water, and he knows it.
But California voters are more of a wild card he can't control. They're going to go full bore on this, which should tell every Democrat exactly what they need to know here.
Between this, the data center bullshit, and the latest on PG&E soaking the working class, there's no way I will ever vote for Newsom in the 2028 primary.
But people really seem taken in by the tweets. The lovely tweets!
Tech, AI, and crypto are going politician shopping while progressives are hyperfocused on that other thing.
Almost feels like the distraction is by design at this point.
bucolic_frolic
(56,327 posts)Break them up instead. Plenty of history on trustbusting.
hookaleft
(1,400 posts)But I vehemently am against his non-support for this bill. He threatened to veto it when it was before the California senate. I can't understand why, when he is in support for AI protections. I just don't get it.
As Trump rolls back protections, Governor Newsom signs first-of-its-kind executive order to strengthen AI protections and responsible use
SAN FRANCISCO Governor Gavin Newsom issued an executive order today to strengthen Californias procurement processes and raise the bar for artificial intelligence companies seeking to do business with the state. The order aims to ensure that companies meet strong standards and demonstrate responsible policies that prevent misuse of their technology, while protecting users safety and privacy. Unlike the Trump administration, California remains committed to ensuring that AI solutions adopted and deployed by the largest state in the nation and 4th largest economy in the world cannot be misused by bad actors seeking to exploit their users data, subvert their security, and violate their civil rights.
Californias always been the birthplace of innovation. But we also understand the flip side: in the wrong hands, innovation can be misused in ways that put people at risk. California leads in AI, and were going to use every tool we have to ensure companies protect peoples rights, not exploit them or put them in harms way. While others in Washington are designing policy and creating contracts in the shadow of misuse, were focused on doing this the right way.
Governor Gavin Newsom
Fiendish Thingy
(24,473 posts)The initiative shines a bright light on just which Democrats support working families, and which ones have been bought by the techbros.
Ponietz
(4,609 posts)usonian
(27,174 posts)and again.
ISSUES? We've got all the issues we need, right here.
DEMOCRATS IN DISARRAY.
F U
Scrivener7
(60,379 posts)usonian
(27,174 posts)Fettuccini are the most popular weapon though some are readying the heavy artillery: bucatini, for heavy assault.
MichMan
(17,632 posts)Total accumulated wealth consists of real estate, investments, businesses, art, jewelry, cars, aircraft, boats, collectibles, furniture and anything else that is property.
Just how does California plan on assessing the values of all those things, without a team of assessors physically looking at all of them? Honor system?
First off, they have to determine the values to know who is even eligible for the tax and after that, determine how much people would owe. It seems like they would have to assess all kinds of people to know who had $100 million, $500 million, or over a billion.