In summary
The governor has announced his positions on most of the 14 propositions on the November ballot.
Not only has Gov. Gavin Newsom strongly opposed California’s proposed billionaires tax, but he also wants to prevent the state from enacting a wealth tax in the future.
On Friday, he endorsed Proposition 42, a ballot measure that would overturn Proposition 40, the proposed billionaires tax. Proposition 42 would ban retroactive taxes like the one-time 5% asset tax that would apply to any billionaire who lived in California on January 1, 2026 if Proposition 40 passes.
But Proposition 42, funded and put to a vote by billionaire and Google co-founder Sergey Brin to defeat the billionaires tax, would also go further, banning any new taxes on personal property.
This includes pensions and 401K accounts before retirees begin drawing retirement income from them. It also includes other investments, financial assets, business interests, art collections and any other forms of personal wealth that would be affected by the billionaires tax or any future wealth tax.
Newsom’s decision to support Proposition 42 runs counter to his own Democratic Party and some unions. It also connects him with some of the wealthy tech donors with whom he has long-standing relationships dating back to his time as mayor of San Francisco.
Proponents primarily argue that middle-class workers’ pensions and pension accounts should never be taxed as assets before the earnings are then taxed a second time as income, even though no such proposal exists. Lawmakers have proposed asset taxes in the past, but those bills have gone nowhere in Parliament and any tax would require a two-thirds majority to pass. The proposed billionaires tax also exempts many types of retirement accounts.
“We all agree that Californians deserve to have their retirement and savings protected from new state taxes so that those savings are there when they need them,” Newsom said in a statement released by supporters, who also include police and fire unions.
Supporters of the tax criticized his support for Proposition 42 as being “in line with his billionaire supporters.”
“By voting yes on Proposition 42, he is showing California its true colors,” Debru Carthan, vice president of the Service Employees International Union-United Healthcare Workers West, said in a statement. “He would rather see millions of children and families lose their health care than ask a few hundred billionaires to finally pay their fair share.”
Voter’s Guide 2026
Get ready for the California midterm elections. This voter’s guide has everything you need to know
Newsom has not yet taken a position on Proposition 41, another anti-billion dollar measure backed by Brin that would undo Proposition 40 by subjecting tax revenue to certain spending limits and state audits, spokeswoman Izzy Gardon said. The billionaire tax measure, funded by a health care union, would dedicate 90% of the money collected to the state’s health program for low-income residents, Medi-Cal.
Newsom, along with many other prominent California Democrats and most Republicans, strongly opposed the billionaires tax and tried to negotiate to keep it off the ballot. In general, during his two terms as governor, he opposed state-level asset taxes for fear that the wealthy would leave the state and deprive the state of their tax revenue.
But he also sought to capitalize this year on a populist surge and frustration with tech billionaires ahead of his decision whether to run for president after leaving office. The California Democratic Party has endorsed the billionaires tax, and polls show a slim majority of likely voters support it.
In response to the billionaires tax, Newsom announced a proposal this summer to impose a national tax on the wealthy, including a minimum tax rate for anyone with a net worth of more than $100 million. He also wants to reverse the corporate tax cuts approved by President Donald Trump and Congress in 2017, raise the estate tax and close loopholes for the wealthy to borrow against unrealized capital gains without paying income taxes.
Left-wing critics have attempted to use his opposition to Prop. 40 against him. Last weekend, while rallying against the billionaires tax, California Democratic Rep. Ro Khanna, another possible 2028 presidential contender, said donor relations were the “only reason” for Newsom’s opposition.
“You can’t be anti-Trump and then do what Trump donors ask,” Khanna said in a video with former progressive congressional candidate Saikat Chakrabarti.
Khanna pointed to Brin, who has never donated to Newsom but has had a relationship with the governor for years. Newsom and Brin attended each other’s weddings. The tech mogul has also recently turned to the right, courting favor with Trump.
Newsom announced his endorsement of Proposition 42 on Friday as well as his positions on most of the 14 ballot measures Californians are deciding on.
He approved most of the measures on the ballot, but opposes Proposition 39, the Republican-backed voter ID measure; Proposition 43, a measure to make it harder to pass most local taxes; and Proposition 44, a health union-backed measure to dictate how much clinics serving low-income patients must spend on patient care.
He has yet to take a position on Proposition 45, the business-backed measure that sets deadlines on the environmental review process for new developments.
