Economist Criticizes Newsom Over Effort to Block Billionaire Tax

Zucman, a research professor at UC Berkeley, took to social media to call out Newsom’s interference in the healthcare union-led initiative. Organizers recently secured enough signatures to place the one-time 5% levy on billionaire wealth before voters this November. The economist argued that by attempting to protect high-net-worth individuals like Peter Thiel and Mark Zuckerberg, the governor is effectively validating conservative talking points regarding capital flight and economic growth, while undermining democratic participation.

The Clash Over State Policy

The initiative aims to generate revenue to offset federal Medicaid cuts, a prospect Zucman believes could provide a national template for wealth taxation. While the governor’s office maintains that the measure is poorly designed and risks harming public services, proponents argue that the billionaire class has seen their wealth swell by 144% over the last three years to over $2 trillion. Suzanne Jimenez, chief of staff for SEIU-United Healthcare Workers West, dismissed the administration's concerns as misinformation, noting that the projected revenue from the tax far exceeds potential losses from those who might relocate. Newsom recently rejected a compromise that would have lowered the tax rate to 2% in exchange for his support, signaling a firm opposition to the current proposal.