Wealth Tax News – 6/29/2026

Wealth taxes dominated the agenda this week, headlined by California Gov. Gavin Newsom’s call for a national billionaires’ tax just as the state’s own billionaire’s wealth tax measure was cemented on the November ballot over his objections, setting up a costly, deep-pocketed showdown.

Federal momentum continued to build as Democrats, energized by Elon Musk becoming the world’s first trillionaire, renewed calls to tax extreme wealth, while California’s debate splintered the party and drew sharp opposition from unions, billionaires, and figures like Florida Gov. Ron DeSantis. Elsewhere, Massachusetts’ high court blocked a proposed income-tax-cut ballot measure, Washington’s record capital gains collections complicated “capital flight” arguments amid a repeal push, and a county in Pennsylvania is considering a wealth tax.

Please find summaries of relevant articles with web links below. Please reach out to any member of your Brownstein National Tax Policy Group team with questions or to set up a meeting.

Feberal

Newsom calls for national billionaire tax while fighting California wealth tax measure – POLITICO
California Gov. Gavin Newsom called Friday for a national tax hike on the ultra-wealthy—including a minimum tax on billionaires and those worth over $100 million, a “modern Buffett rule,” an end to tax-free borrowing against appreciated assets, and a national public equity fund to share AI-driven gains—just a day after California’s wealth tax measure was cemented on the November ballot over his objections. Framing the fight as one that “belongs at the federal level,” Newsom argued the state measure was flawed for directing roughly 90% of its revenue to offset federal health care cuts rather than funding schools, housing, or childcare, in a move widely seen as positioning him as a champion of taxing billionaires ahead of a likely presidential run.

 Newsom Pitches Federal Wealth Tax After Losing California Battle – Bloomberg
Gov. Gavin Newsom, weighing a 2028 presidential run, called for a federal billionaires’ tax on those worth more than $100 million—along with inheritance-rule changes and closing loopholes on borrowing against assets—after he, billionaires, and progressive groups failed to persuade SEIU-UHW to pull California’s wealth tax measure before the deadline, setting up a costly November showdown. The one-time 5% tax on net worth, projected to raise as much as $100 billion to backfill federal health care cuts, faces deep-pocketed opposition—including billionaire Sergey Brin, who has spent over $80 million funding rival ballot measures that could nullify it—even as it draws 54% support in a PPIC poll and backing from Sen. Bernie Sanders and Rep. Ro Khanna.

Democrats Renew Wealth Tax Push After Musk Becomes First Trillionaire – Bloomberg
Elon Musk becoming the world’s first trillionaire has reignited Democratic calls for taxing extreme wealth. Figures such as Sens. Elizabeth Warren (D-MA) and Bernie Sanders (I-VT) argued the milestone highlights economic inequality and called for a wealth tax. Sen. Sanders promoted lifting the payroll tax cap to bolster Social Security. Others like Rep. Ro Khanna (D-CA) and Gov. Gavin Newsom (D-CA) framed Musk’s wealth against rising affordability pressures. The issue is emerging as a likely theme in the next Democratic presidential primary, though it also underscores a political challenge: Musk and similarly wealthy figures are increasingly using their resources to influence elections.

IAM Union, U.S. Senators to Rally Workers Against Billionaires on Capitol Hill, Endorse Make Billionaires Pay Their Fair Share Act – IAM Union; LIVE: Workers vs. Billionaires Rally with the Machinists – YouTube
On Monday, Sens. Sanders, Tina Smith (D-MN), Chris Van Hollen (D-MD), and Ed Markey (D-MA) spoke at the “Workers vs. Billionaires” rally. Their remarks framed America’s core conflict as one between working people and a wealthy elite. See link above for full video and transcript.

 California

California Voters Are Set to Consider Tax Transparency Measure – Bloomberg
California voters will consider a ballot measure in November requiring greater transparency and oversight for new taxes (the Improving Transparency, Effectiveness & Efficiency in California Government Act of 2026), which has been viewed as a counter-initiative to the proposed billionaire tax. It would include mandatory pre-election and ongoing audits of programs funded by voter-approved special taxes. The proposed constitutional amendment would also bar new taxes from bypassing existing state spending limits.

Opinion: I represent Silicon Valley. Here’s why I support taxing its billionaires – Mercury News
California Assemblymember Alex Lee (D) argues that extreme wealth concentration in Silicon Valley, illustrated by Meta’s soaring profits, Mark Zuckerberg’s growing fortune, and mass layoffs used to fund AI investment, reflects billionaires extracting maximum value from workers while displacing them. He argues that a national wealth tax, starting with California’s proposal is needed to curb this concentration of money and power and to redirect billionaire wealth into housing, health care, education, and infrastructure for the communities that generated it.

California’s Democratic Civil War Over the Wealth Tax – WSJ
The WSJ Editorial Board describes a growing intraparty battle among California Democrats over the wealth tax proposal. The Board notes that Gov. Newsom and major unions such as the California Teachers Association and health-care provider groups oppose the measure, not on principle against taxing the rich, but because they fear it will accelerate wealthy flight, erode the tax base, and divert or destabilize revenue streams they prefer from more permanent tax hikes. The Board also cites data from California Tax Foundation visiting fellow Jared Walczak that California has already lost $777 billion in wealth-tax flight.

 Voters in deep blue California are souring on ballot measures that add new taxes – Orange County Register
Dan Walters argues that even in deep-blue California, voters are growing more skeptical of tax hikes. He cites recent primary results where only about 58% of local tax and bond measures passed, down sharply from roughly 70% in past elections. Polling from the Public Policy Institute of California shows a majority of voters now prefer lower taxes and fewer services, with rising cost-of-living and inflation concerns driving resistance even in traditionally progressive cities like San Francisco and San Diego, where several business and vacancy tax proposals were rejected.

 DeSantis warns of ramifications of California’s billionaire tax – New York Post
Gov. Ron DeSantis (R-FL) warned that California’s wealth tax proposal would not remain limited to the ultra-rich and framed it as a first step toward broader government “confiscation” of property.  

 Opinion: California Leads the World in Taxing the Rich – WSJ
James Freeman, assistant editor of The Wall Street Journal’s editorial page, argues that California already has the most progressive income tax system in the industrialized world. He noted that high earners bear a larger share of the income-tax burden than anywhere else, yet state and national Democrats are still pushing a wealth tax on billionaires. It criticizes figures like Sen. Sanders and gubernatorial candidate Xavier Becerra (D) for claiming the rich are undertaxed. He said California’s high taxes are driving affluent residents out of the state and that further “tax the rich” measures amount to a deceptive and economically risky expansion of an already highly progressive tax regime.

Rich Californians Are Finding Creative Ways to Get Ahead of the Billionaire Tax – WSJ
California’s wealth tax proposal is already driving intensive tax planning among wealthy individuals, who are exploring ways to reduce their exposure without leaving the state. Wealth advisers describe clients accelerating charitable giving, restructuring assets (i.e. moving real estate into forms excluded from the tax base), delaying funding rounds that would boost valuations, and buying out-of-state tangible property such as art or yachts to keep it outside California’s reach. However, they note these strategies are narrow, can trigger other tax consequences, and may be challenged under the proposal’s anti-avoidance rules.

Massachusetts

Massachusetts Court Blocks Ballot Measure to Cut State Income Tax to 4% – Bloomberg
Last week, the Massachusetts Supreme Judicial Court ruled that a proposed ballot initiative to cut the state income tax rate from 5% to 4% cannot appear on the November ballot. The court held that the official summary used to gather signatures was misleading because it failed to specify that taxes on capital gains would also be cut. The measure would have reduced taxes for residents across all income levels but was projected to cost the state more than $5 billion annually, or up to about 9% of the current fiscal year budget.

New York City

The powerbroker: Mamdani-endorsed candidates obliterate old guard Dems in NYC – Politico
Mamdani-backed primary victories in New York are expected to strengthen the push for more aggressive progressive tax policies, particularly higher taxes on wealthy individuals to fund priorities like universal childcare. With an expanded bloc of democratic socialists and allied progressives in the state Legislature, lawmakers are likely to intensify pressure on Gov. Kathy Hochul (D), who previously resisted such measures, to adopt revenue-raising proposals targeting high earners.

Washington

Opinion: Washington state’s rich are leaving? Another tax on wealth smashes records – The Daily Chronicle
Washington state’s capital gains tax, targeting high-income investment profits, has generated far more revenue than expected, reaching about $1.5 billion in 2026. This is nearly triple from the prior year despite claims that wealthy residents would leave or avoid the tax. While some individuals have relocated, strong stock market performance and rising wealth among those who remain have driven record collections, complicating arguments that “tax-the-rich” policies would erode the tax base. It suggests that, at least so far, high-end wealth in the state continues to grow even amid outmigration concerns.

Initiative to repeal WA income tax would ax revenue, keep added costs – Washington State Standard
Last week, Let’s Go Washington (conservative political committee in Washington state) began circulating an initiative to repeal the state’s newly enacted millionaires tax. The initiative would keep the associated tax cuts and credits from the original bill but repeal the income tax provision. If approved, the measure would eliminate an estimated $2.7 billion a year in anticipated revenue while adding about $570 million in ongoing costs. The Washington state treasurer, Mike Pellicciotti, said it could knock the state’s structurally balanced budget out of alignment and hurt the state’s credit rating.

Pennsylvania

Lehigh County commissioners to consider proposed wealth tax – WFMZ
Lehigh County commissioners are considering a proposed “wealth tax” that would impose a tax on passive income and intangible assets such as stocks and bonds. It is projected to raise more than $25 million annually to relieve long‑term budget pressure and avert large future property tax hikes. The idea, advanced by County Controller Mark Pinsley (D), has drawn both support and opposition. County Executive Josh Siegel called it worth exploring as a way to shift some burden off seniors and homeowners, while others argue it functions more as an intangible property tax on common savings vehicles than a true tax on billionaires.