(Ben Sellers, Headline USA) California Gov. Gavin Newsom, licking his wounds after failing to get a state billionaire tax off the November ballot, sought to punish wealthy individuals who flee his state by proposing a federal billionaire’s tax.
“The system is fundamentally broken,” Newsom wrote in a post on social media that linked to a longer Substack article.
“The federal tax code, a corporate code, and an inheritance code were written for a different set of Americans,” he added. “It’s time for an economic reset.”
It's time for a national billionaires tax and a new social contract.
10% of Americans own two-thirds of the wealth. Wages have stagnated. The cost of living has skyrocketed.
The system is fundamentally broken.
The federal tax code, a corporate code, and an inheritance code… pic.twitter.com/tLRbUId6yi
— Gavin Newsom (@GavinNewsom) June 26, 2026
Newsom — likely eyeing his presidential prospects in 2028, despite years of failed leadership at the state level — desperately scrambled to protect his longtime friends and donors.
The proposed one-time tax would take 5% from all billionaires in the state, likely leading to a significant exodus of wealthy residents if successful.
Although Newsom tried to thwart the referendum, interest in cutting a deal “was basically nonexistent,” said Dave Regan, head of the SEIU-United Healthcare Workers West union, which led the charge to get it on the ballot.
“What the governor has made clear from the beginning is that he would not entertain any proposal or compromise that would tax billionaires,” Regan told the New York Post.
In order to placate his donors and French Laundry dining partners — or, at the very least, to discourage them from leaving California — Newsom proposed forcing the wealth tax on all U.S. billionaires.
“I will continue to oppose the November measure because I believe California’s budget belongs to all Californians, not to any one stakeholder, no matter how worthy the cause,” Newsom claimed in his blog post. “And I will keep making the case, here and everywhere I can, that the fight against concentrated wealth is a national fight that we have to win soon.”
Newsom seemed particularly bitter over trillionaire Elon Musk’s success since leaving California in 2020 in response to Democrats’ political persecution.
This single tweet cost California hundreds of billions of dollars in taxes, revenue, and jobs: pic.twitter.com/eXwbX4gi1l
— John LeFevre (@JohnLeFevre) June 12, 2026
“Don’t worry, we’ll be taxing trillionaires even more,” Newsom wrote in response to a tweet from Musk that compared him to the animated character Butthead. “Time to cough up after all that California corporate welfare!”
Don’t worry, we’ll be taxing trillionaires even more.
Time to cough up after all that California corporate welfare! https://t.co/TaOzDNzw7C
— Gavin Newsom (@GavinNewsom) June 27, 2026
But experts proceeded to dismantle the Democrat governor’s motives and reasoning.
Constitutional law expert Jonathan Turley compared the tax to the Eagles’ song “Hotel California,” in which residents can check out any time they like but can never leave.
…The problem is that many non-billionaires are also fleeing the state. Yet, it appears most Californians are a captive population, but there are people who can actually go to well-run states with low taxes and great schools. Welcome to Hotel California. https://t.co/FvJsTyrlh7
— Jonathan Turley (@JonathanTurley) June 26, 2026
Manhattan Institute scholar Christopher Rufo noted that Newsom’s instincts for wanting to avoid a bad policy at the state level were no less true at the national level.
“The billionaire tax is going to destroy Gavin Newsom’s state — the majority of the state’s ultra-wealthy are already making exit plans — so he wants to pawn it off on the entire nation,” Rufo wrote. “This is a bad idea, proposed by a bad man, that will produce bad results. Must be stopped.”
The billionaire tax is going to destroy Gavin Newsom's state—the majority of the state's ultra-wealthy are already making exit plans—so he wants to pawn it off on the entire nation. This is a bad idea, proposed by a bad man, that will produce bad results. Must be stopped. https://t.co/aR0l0Lewsp
— Christopher F. Rufo ⚔️ (@christopherrufo) June 26, 2026
Rufo also has been busy exposing Newsom’s corrupt circle of friends, with recent articles in the City Journal exposing the many associates who are under investigation or accused of criminal activity.
EXCLUSIVE: Our team has scoured public records and discovered that Gavin Newsom has close connections with at least ten people who have been investigated, indicted, or convicted of fraud and corruption.
We've mapped out Gavin Newsom's criminal network:https://t.co/YY1Mi5DqOb
— Christopher F. Rufo ⚔️ (@christopherrufo) June 24, 2026
Newsom revealed last week that he, himself, may be under a federal investigation.
“In recent days, federal agents have knocked on the doors of family friends and former employees, not because they found a crime, because they’re simply trying to find one,” he alleged in a video statement. “They’re demanding records. They’re abusing the grand jury process, digging through years and years of random documents.”
BREAKING: California Governor Gavin Newsom WHINES as he announces he’s under DOJ investigation. Maybe now he'll be held accountable for wrecking the state?!!
"In recent days federal agents have knocked on the doors of family friends and former employees, not because they found a… pic.twitter.com/LpJ4Yq6Fdy
— DeVory Darkins (@devorydarkins) June 15, 2026
Ben Sellers is a freelance writer and former editor of Headline USA. Follow him at x.com/realbensellers.
