Gavin Newsom backs nationwide billionaire tax and an AI equity fund: 'Every American should own a piece'

Governor Gavin Newsom has voiced strong support for a nationwide tax on billionaires, arguing that a localized approach is ineffective. In a recent Substack post, he emphasized that the focus should shift from state-specific initiatives to a comprehensive federal solution. Newsom criticized the current system, stating, "The fight to make the wealthiest Americans pay more in taxes is not one we should be fighting state by state." He pointed out that while average citizens may lack the option to relocate to tax-friendly states, billionaires often do. The governor proposed a national billionaire tax, referring to it as a modernized version of the Buffett Rule, which aims to ensure that billionaires do not pay a lower effective tax rate than their employees. This call for reform includes abolishing tax-free lifestyle loans, which allow the wealthy to leverage their assets without incurring capital gains taxes. In addition, Newsom advocated for reinstating corporate tax rates to their pre-2017 levels and revising inheritance tax laws to prevent the entrenchment of wealth among the ultra-rich. He warned that failing to address these issues could lead to a permanent aristocracy, undermining the democratic ideals of the nation. As part of his broader vision, Newsom also highlighted the importance of Americans having equity in leading AI companies. He proposed the establishment of a national public equity fund to hold stakes in these companies and support workers transitioning as AI technologies evolve. This initiative aligns with similar proposals from political figures like Senator Bernie Sanders and former President Trump, who have called for government equity in major AI firms. As companies like SpaceX and OpenAI prepare for public offerings, the discourse around public ownership in the tech sector is intensifying. Looking ahead, Newsom plans to release additional policy proposals, emphasizing the need for reform in how the country approaches wealth distribution and taxation. He remains opposed to a controversial state initiative that proposes a one-time tax on California billionaires, arguing that such measures should not dictate state tax policy. With a gubernatorial election looming, the outcome of this debate could significantly impact the political landscape in California and beyond, especially as competing initiatives funded by tech billionaires are set to appear on the ballot this November.