There’s a significant push in California to reform the healthcare system, targeting the state’s wealthiest individuals. Governor Gavin Newsom has come out as a notable opponent of this initiative.
A political consultant named Dan Newman expressed that Newsom is against a proposed one-time 5% tax aimed at around 200 billionaires with fortunes exceeding $1 billion. This tax aims to “replace lost federal funding and protect essential services,” as outlined by the campaign.
If this measure goes through, high-profile tech leaders like Meta’s Mark Zuckerberg and Nvidia’s Jensen Huang could face huge tax bills—potentially in the billions. For instance, 5% of Huang’s wealth would translate to about $8 billion, while Zuckerberg’s total liability could surpass $12 billion.
Supporters of the tax claim that the revenue would fund essential health services and contribute to the struggling education system in the state.
Advocates for the billionaire tax, which includes groups like SEIU United Health Care Workers West and St. John’s Community Health, argue that it’s essential due to funding cuts from the federal government affecting Medi-Cal and other healthcare initiatives.
Newsom’s stance is a setback for progressive groups and labor organizations supporting this tax initiative, which could potentially generate around $100 billion over five years. Opponents fear that this might drive affluent residents away from California, exacerbating the existing budget deficit.
Newsom’s office has not commented on the matter.
SEIU-UHW Chief of Staff Suzanne Jimenez mentioned that she believes, in time, Newsom and those worried about the tax will come around. “California’s frontline health care workers welcome and look forward to a good faith dialogue with the Governor on these important issues as the November 2026 vote approaches,” she stated.
The governor is already contending with a substantial budget deficit that exceeded $44 billion last year. He’s been vocal against broad tax increases, emphasizing California’s already high tax burden on corporations and wealthy individuals. The rising cost of living has led to a notable exodus of both residents and companies, like Tesla, who cite these taxes and regulations as driving factors.
As he eyes a potential presidential run in 2028, Newsom indicated he would decide his course after the 2026 midterm elections. Should he pursue the presidency, he might have to distance himself from key players in Hollywood and Silicon Valley.
Newsom has seen support from various billionaires including Netflix’s Reed Hastings and Laurene Powell Jobs, as well as former Google CEO Eric Schmidt. His political journey began with backing from Gordon Getty, a family ally and oil heir.
Prominent figures in Hollywood, known for their support of Democratic candidates, are rallying behind Newsom’s expected presidential bid.
“He’s a fighter, that’s what we need!” a Hollywood producer, noted for their reliable Democratic funding, remarked.
“Large contributions are being made,” added James Kostos, a former U.S. ambassador to Spain.
Another unnamed donor indicated that significant contributors are eager to support Newsom once his presidential campaign officially launches.
The Billionaire Tax Act of 2026’s advocates have already filed the necessary paperwork and aim to gather 874,641 signatures to have it presented on the November 2026 ballot.
