Union leader behind billionaires tax criticizes Gavin Newsom in unusual interview

California’s Billionaire Tax Proposal Sparks Clash

The leader of a union backing California’s contentious billionaire tax proposal has taken a strong stance against Governor Gavin Newsom. He accuses Democrats of working alongside the wealthy elite, as both sides grapple with efforts to remove the tax from the November ballot.

In an interview, SEIU-United Health Care Workers West President Dave Regan criticized Newsom’s resistance to the tax, implying that the governor’s motivations were more about political aspirations than genuine policy concerns.

Regan speculated that Newsom might struggle to campaign successfully without considering the interests of billionaires. This assumption ties into ongoing speculation about a potential presidential run for the governor in 2028, which would necessitate significant fundraising from affluent supporters.

He pointed out that such endeavors could require “hundreds of millions” in campaign funds, and suggested that the locations where this funding could come from are limited.

Regan further argued that Newsom’s apparent deference to the wealthy could harm Democrats on a national scale, possibly opening the door for a candidate aligned with Donald Trump if Newsom secures the party’s nomination.

“The right and the far right often use more populist language than Democrats do,” Regan remarked, expressing concern over giving rise to another leader focused on the interests of America’s richest citizens.

His comments were indirectly critical of Newsom, who has faced scrutiny for remarks on what he deems “crony capitalism.”

Newsom has expressed opposition to a proposed one-time 5% tax aimed at individuals with assets exceeding $1 billion, citing worries that it could trigger an exodus of wealthy residents, which could potentially harm California’s economy. It’s reported that the governor has worked behind the scenes to gather support from other unions and groups against the tax.

Supporters of the tax argue that the funds are essential to counteract federal budget cuts to health care. While the bill is set to appear on the ballot this week, it could still be pulled off by June 25 if Newsom can strike a deal.

However, little progress has been made publicly. Advocates recently proposed a 2% tax as a legislative alternative, which Newsom swiftly dismissed.

“Though the Governor believes the wealthy should contribute their fair share, this measure—lacking proper design—could jeopardize funding for teachers, schools, health facilities, and public safety,” a spokesperson from his office stated.

If the proposal makes it to voters, analysts predict that the campaign will be expensive. Wealthy individuals, including Google co-founder Sergey Brin, have already invested millions to undermine the bill.