Newsom Vows to Block California's Proposed Billionaire Wealth Tax

California Gov. Gavin Newsom says he will fight and likely defeat a proposed 5% wealth tax on net worth over $1 billion if it reaches the ballot, arguing the plan would drive billionaires out of the state and hurt the economy. The measure, backed by a healthcare union, would direct most new revenue to health care and related programs, but state analysts warn it could cause long‑term losses as the wealthy relocate. Signatures are being gathered to place the initiative on the ballot. The controversy underscores a clash between funding social programs and maintaining California’s competitive edge in a high‑income economy, with some tech leaders publicly supportive of the tax while others are already pushing back or rethinking ties to the state.