SACRAMENTO, Calif. (Diya TV) — California Gov. Gavin Newsom on Friday called for a national tax on billionaires and a new public ownership model for artificial intelligence companies. His proposal comes as he opposes a separate California ballot measure that would place a one-time 5% tax on the assets of the state’s billionaires.
Newsom shared his economic agenda in a post on Substack. He argued that the United States needs major tax reforms to reduce wealth inequality and protect democracy. He also said the federal government should take a financial stake in AI companies so Americans can benefit from future economic growth.
The announcement came one day after a powerful California health care union confirmed it would move ahead with a statewide ballot initiative. The proposal would impose a one-time 5% tax on the assets of billionaires who lived in California as of Jan. 1, 2026.
However, Newsom said he does not support the state measure. Instead, he argued that a federal approach would work better and reduce the risk of wealthy residents leaving California.
Newsom said billionaires can move their wealth across state lines with relative ease. As a result, he warned that higher state taxes could weaken California’s long-term tax base. California is home to more billionaires than any other state, largely because of its technology industry.
Instead, Newsom proposed a nationwide minimum tax for people with a net worth above $100 million. He also called for new rules that would stop wealthy individuals from borrowing against stock holdings to finance luxury spending without paying income taxes.
In addition, Newsom urged Congress to strengthen inheritance tax laws. He argued that large transfers of wealth could create a permanent class of inherited wealth in America. He also called for raising corporate tax rates to levels that existed before President Donald Trump’s first-term tax cuts.
Furthermore, Newsom tied his economic plan to the rapid growth of artificial intelligence. He warned that AI could replace many jobs while increasing wealth among a small group of technology companies and investors.
To address that challenge, Newsom proposed creating a national public equity fund that would own a major stake in AI companies. He said every American should benefit from the economic gains created by artificial intelligence.
According to Newsom, revenue generated through his tax proposals could support several public programs. Those programs include worker retraining, universal child care, tuition-free college, and expanded health care funding.
The California governor has become one of Trump’s most outspoken political opponents. Meanwhile, political observers continue to watch Newsom as a possible Democratic presidential candidate after he leaves office. His latest policy proposals arrive well before the traditional start of presidential campaign activity following the midterm elections.
Newsom’s support for a national wealth tax also reflects a broader shift within the Democratic Party. In 2020, Massachusetts Sen. Elizabeth Warren promoted a 2% wealth tax during her presidential campaign. While that proposal received national attention, it struggled to gain enough political support.
Now, Newsom has embraced a similar idea while rejecting California’s state-level version. He argued that the nation’s tax system increasingly benefits the wealthiest Americans and allows money to shape public policy.
In his Substack post, Newsom said wealth often translates into political influence. He argued that wealthy individuals can help rewrite tax rules, which then allow them to accumulate even greater fortunes. According to him, that cycle threatens democratic institutions over time.
The debate over taxing billionaires is likely to remain a major political issue as lawmakers continue discussing economic inequality, artificial intelligence and federal tax policy. At the same time, California voters could soon decide whether to approve the proposed one-time state wealth tax.
