California Governor Gavin Newsom is calling for a national billionaire tax while actively working to kill the exact same kind of tax in his own state — and the contradiction is impossible to ignore.
Story Snapshot
- Newsom published a July 4 op-ed calling for a national billionaire tax and an “economic reset,” but he is simultaneously fighting California’s state-level billionaire tax ballot measure.
- Newsom told Democrats to be in the “addition, not subtraction” business — welcoming socialist Democratic Socialists of America candidates rather than pushing them out of the party.
- Economist Gabriel Zucman says Newsom’s national proposal would raise only a tiny fraction of what a real wealth tax would generate, raising questions about whether the plan is serious.
- Newsom has vetoed bills to regulate private equity in healthcare and blocked AI safety rules — a record that clashes sharply with his new populist image.
Newsom Embraces Socialist Wing of Democratic Party
California Governor Gavin Newsom is now openly welcoming the Democratic Socialists of America into the Democratic Party tent. In a video clip from July 2026, Newsom said progressive politics is “very healthy” and that Democrats should focus on “addition, not subtraction.” He pushed back on establishment Democrats who warn that socialist candidates threaten the party. The move signals Newsom is positioning himself as a bridge between the party’s moderate and far-left wings ahead of a possible 2028 presidential run.
The timing is no accident. Democratic Socialists of America candidates have been winning primaries across the country, rattling the party establishment. Newsom appears to be chasing those voters rather than confronting them. For conservatives watching from the outside, this is a preview of where the Democratic Party is heading — further left, faster than most Americans realize.
The Billionaire Tax That Isn’t What It Seems
On July 4, 2026, Newsom published a Substack op-ed calling for a national billionaire tax, a public equity fund giving Americans stakes in artificial intelligence profits, and closing inheritance loopholes to stop what he called a “permanent American aristocracy.” He also called for raising corporate tax rates back to pre-Trump levels. The proposals read like a wish list from the socialist left — but the details tell a different story.
Newsom’s national proposal targets income, not net worth. Economist Gabriel Zucman pointed out that taxing loans taken against stock portfolios — a key piece of Newsom’s plan — would raise only a tiny fraction of the $4.4 trillion a true 5% annual wealth tax would generate. In other words, Newsom’s plan sounds bold but avoids the hard step of actually taxing accumulated wealth directly. It is a political message dressed up as policy.
Blocking the Real Thing Back Home
The most glaring problem with Newsom’s billionaire tax push is what he is doing in California. The state has a 5% billionaire wealth tax ballot measure heading to voters, backed by Bernie Sanders and Congressman Ro Khanna. Newsom says he will vote against it. His stated reason is that the measure dedicates revenue only to healthcare, leaving out housing, childcare, and public universities. Critics note that research does not support his other argument — that billionaires would flee to Texas or Florida if taxed at the state level.
This is what the frog in the kettle looks like.👇
Fox News Story 7/7/26:
Democratic California Gov. Gavin Newsom was the latest prominent Democratic figure on Sunday to embrace candidates endorsed by the Democratic Socialists of America (DSA) as socialists dominate primary… pic.twitter.com/iMcv8yxGAs
— SaveCalifornia.com (@savecalifornia) July 8, 2026
Newsom’s record makes the contradiction even harder to defend. He has vetoed bills to regulate private equity firms in healthcare. He blocked AI safety legislation. His wife’s nonprofit accepts donations from corporations he regulates. These are not the actions of a politician serious about reining in concentrated wealth. They are the actions of a well-connected insider who has learned to speak the language of the left when it is politically useful. Conservative voters have seen this playbook before — big talk, no follow-through, and the same powerful interests protected at every turn.
