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Failing 'Moral Test,' Newsom Rejects Compromise 2% Wealth Tax on California Billionaires
Common Dreams • • nation
Key Points:
- California Governor Gavin Newsom firmly rejected a union-led coalition's proposal to reduce a proposed 5% wealth tax on billionaires to 2%, maintaining his opposition to any California-only wealth tax.
- The Billionaire Tax Now coalition, which gathered enough signatures to place the 5% one-time tax on the November ballot, offered to withdraw the initiative if Newsom backed a 2% wealth tax instead.
- The coalition argues that taxing the wealthiest 200 billionaires, whose fortunes have grown 212% over six years, would help address healthcare funding shortfalls caused by federal Medicaid cuts.
- Newsom's office stated that lowering the tax rate does not address the measure’s fundamental flaws, which they believe would harm working Californians.
- Congressman Ro Khanna supported the 2% compromise, highlighting the concentration of wealth in California and the potential benefits of the tax to mitigate healthcare funding issues.
