California’s Ultra-Wealthy Urge Governor to Reconsider Proposed Billionaire Tax

Governor Gavin Newsom shared at a recent Bloomberg Forum in San Francisco that many of California’s richest residents are urging him to abandon a proposed one-time tax of 5% on individuals with assets exceeding $1 billion.

This initiative could potentially affect around 250 billionaires in the state.

Notable tech figures like Google co-founders Larry Page and Sergey Brin have reportedly moved their wealth out of the state, while others, such as Oracle’s Larry Ellison and investors like David Sachs and Peter Thiel, have relocated their operations to cities like Miami and Austin.

The Teamsters union, which boasts about 250,000 members, has thrown its support behind the tax measure. The union claims this tax would hold billionaires responsible for “destroying our jobs and depriving our families of health care,” and insists they are combating Big Tech’s policies that undermine good paying jobs.

Newsom, who has established connections with many wealthy tech leaders, pointed out that billionaires feel “attacked” by such proposals. He has consistently raised concerns regarding taxation, citing personal conversations with these ultra-wealthy individuals.

Last year, he made headlines by sending burner phones pre-programmed with his number to top CEOs, claiming it was an effort to maintain communication with the business sector.

During his remarks, Newsom highlighted that while some of these billionaires don’t mind paying increased income taxes—some are even noted for their philanthropic efforts—they prefer to do so on their own timelines. “I’ve met with all of them,” he mentioned, adding that opinions about them vary widely. “Some I respect, some I don’t, and some, perhaps, I never will.” He didn’t disclose specific names, emphasizing the diversity in their stages of life and wealth.