Source: Fortune
Summary
California Governor Gavin Newsom has criticized the proposed billionaire tax, saying it could hurt the state in the long term by reducing investments in education, social services, and public safety. The tax, which would impose a one-time 5% wealth tax on residents with a net worth of $1 billion or more, has been met with opposition from billionaires such as Peter Thiel, who has donated $3 million to a campaign against the initiative. Newsom has urged voters to reject the tax, citing concerns about its impact on the state’s tax base and revenue. The tax is expected to raise $100 billion in revenue over five years, but its fate is uncertain, with 48% of likely voters supporting it and 38% opposed.
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The numbers tell one story.
The billionaire tax has become a rallying cry for the wealthy to relocate, with Thiel, David Sacks, Larry Page, and Sergey Brin taking steps to leave the state. Meanwhile, Newsom is fighting the tax, warning of its potential to reduce investments in social services and public safety. The governor’s criticism has been met with a $3 million donation from Thiel to a campaign against the initiative. The tax’s fate is uncertain, but one thing is clear: the wealthy are willing to spend big to avoid it. The tax is a solution to a problem that Newsom acknowledges, but his opposition to it has raised questions about his commitment to addressing wealth inequality.
It’s a fight that’s less about the tax itself and more about who gets to write the rules.
Author: Evan Null
