Newsom backs wealth tax ban
The gist
Newsom endorsed Proposition 42, which would cancel Proposition 40's 5% billionaire tax.
The clash splits California Democrats and tests whether voters want a wealth tax.
How it unfolded
- Jan 1, 2026Proposition 40's one-time 5% tax would apply to any billionaire who lived in California on this date.
- Jan 2026Newsom announced his opposition to Prop. 40, saying a wealth tax would drive the wealthiest residents out of California and leave the state without critical tax dollars.
- Jun 2026Proposition 50 qualified for the November ballot, exceeding the 962,106 valid signatures expected to back the initiative.