State Policy · CA
Newsom Endorses California Measure to Block Billionaire Tax
Gov. Gavin Newsom endorsed Proposition 42, a November ballot measure backed by Google co-founder Sergey Brin that would nullify Proposition 40's proposed billionaire tax and bar any future state wealth tax, including on retirement accounts and other personal assets. Prop. 40 would impose a one-time 5% tax on billionaires' assets, directing 90% of revenue to Medi-Cal, the state's low-income health program. Newsom's endorsement puts him at odds with his own party, labor unions including SEIU-UHW, and 2028 presidential rival Rep. Ro Khanna, who argue he is protecting wealthy donors at the expense of healthcare funding for millions of Californians. Voters decide both measures, along with 12 other propositions, in November.
Why it mattersIf Prop. 42 passes and defeats the billionaire tax, Medi-Cal loses a dedicated funding stream that proponents say would have directed billions toward coverage for low-income residents.