\u00a0<\/h3>\nCommentary focused on constitutional barriers to a federal wealth tax, the practical risks of capital flight and revenue loss from the California proposal, and the growing split among business leaders and tech figures over whether the state measure would drive innovation elsewhere or be absorbed without lasting harm. In Washington, an initiative to repeal the state’s 9.9% millionaire tax awaits signature verification, with a parallel lawsuit also challenging the tax on constitutional grounds.<\/strong><\/em><\/h3>\n <\/p>\n
Please find summaries of relevant articles with web links below.<\/strong> Please reach out to any member of your Brownstein National Tax Policy Group team with questions or to set up a meeting.<\/a><\/p>\nCalifornia Wealth Tax Initiative 2026: Latest Polls – The New York Times<\/a>
The New York Times has set up a page on their website tracking recent polling on the California wealth tax proposal. We will regularly include this in future editions of our updates.<\/p>\nCalifornia<\/strong><\/h4>\nGavin Newsom calls for national billionaires tax: ‘Economic reset\u2019 – CNBC<\/a>
Gov. Newsom called for a nationwide \u201cbillionaires tax\u201d as part of a broader \u201ceconomic reset.\u201d He is proposing a minimum tax on the ultra-wealthy, closing loopholes like \u201cbuy, borrow, die,\u201d\u00a0returning corporate tax rates to pre-2017 levels, revising inheritance rules, and creating a national public equity fund tied to AI-driven growth. While positioning the agenda as helping working Americans and signaling potential 2028 presidential ambitions, Gov. Newsom reiterated his opposition to the wealth tax proposal imposing a state-level wealth tax, while arguing that such policies are ineffective at the state level because wealthy individuals can relocate and that the issue should be addressed federally.<\/p>\nThe Founders Wouldn\u2019t Back a \u2018Billionaire Tax\u2019 – WSJ<\/a>
Jonathon Turley, a law professor at George Washington University\u2019s Law School, argued that Gov. Newsom\u2019s call for a national \u201cbillionaire tax\u201d misunderstands the Founders\u2019 intent, asserting that Madison, Locke, and other key figures designed the constitutional system to limit concentrations of\u00a0political\u00a0power, not wealth. He argues that the Founders\u2019 intent also protected private property through mechanisms like the Fifth Amendment\u2019s Takings Clause. Turley argues that a federal wealth tax would be unconstitutional as a direct tax on property, criticizes Gov. Newsom for using founders\u2019 rhetoric to justify redistribution while opposing California\u2019s own wealth tax proposal due to wealth flight and fiscal strain. He warns that progressive strategies such as court-packing and wealth taxes could gradually expand from billionaires to ordinary property owners in a way that reflects \u201cMamdanian,\u201d not Madisonian, democracy.<\/p>\nThe Socialist Wave, West Coast Version – WSJ<\/a>
The Wall Street Journal Editorial Board argued that Gov. Newsom is trying to straddle a line between Silicon Valley donors and an upcoming socialist left by opposing California\u2019s ballot wealth tax while endorsing a national one. The Board frames the national tax as inconsistent with the Founders despite constitutional concerns about wealth taxes as direct takings of property. The Board faults him for refusing to seriously confront unions pushing the state measure, suggests the state tax would harm entrepreneurship without fixing budget problems rooted in spending, and warns that his effort to appease the socialist wing may backfire politically as that faction grows more assertive.<\/p>\nNewsom\u2019s political chops will be tested by wealth tax fight \u2013 Orange County Register<\/a>
The Editorial Board argues that Gov. Newsom is trying to balance political pressures as he opposes the wealth tax proposal ballot measure backed by SEIU-UHW while simultaneously endorsing the idea of a national billionaire tax to maintain credibility with the political left ahead of a potential 2028 presidential run. The Board criticizes both the union\u2019s proposal, calling it poorly designed, overly targeted toward healthcare spending, and likely to drive wealthy residents out of the state, and Newsom\u2019s positioning. The Board suggests his objections are more about control over how revenues are allocated than about principle. The board ultimately supports rejecting the ballot measure and frames the situation as a test of Newsom\u2019s political maneuvering.<\/p>\nOpinion | Gavin Newsom\u2019s wealth tax two-step – The Washington Post (Gift Link)<\/a>
The Washington Post Editorial Board criticized Gov. Newsom for what it portrays as an inconsistent \u201ctwo-step\u201d on wealth taxes, opposing a California ballot measure while advocating for a national version, arguing that if such a tax is flawed at the state level, it would be even more problematic federally. The Board argues that wealth taxes are ineffective, difficult to administer, and have largely failed in other countries, while also raising constitutional concerns about a federal wealth tax as a direct tax. It further suggests Gov. Newsom\u2019s proposal broadens beyond billionaires to target a wider group of high earners and frames his stance as politically motivated positioning ahead of a potential presidential run rather than sound economic policy.<\/p>\nHeidi Heitkamp on the wealth tax: It’s no surprise that Gov. Gavin Newsom opposes it in California – CNBC<\/a>
Former Sen. Heidi Heitkamp (D-ND) and former White House Chief of Staff Mick Mulvaney underscored that \u201cwealth tax\u201d is an imprecise label covering very different concept, ranging from personal\u2011property\u2011style taxes on net worth to unrealized gains, and that none of the national proposals have been fleshed out enough to resolve major legal and administrative questions. Sen. Heitkamp argued that it is unsurprising Gov. Newsom opposes a California-only wealth tax because mobile capital and high\u2011net\u2011worth residents can simply leave. Mulvaney frames Newsom\u2019s call for a federal billionaire tax as political positioning that lets him appeal to progressives without harming his state\u2019s competitiveness. Both emphasize that extreme wealth concentration is a real problem but suggest more targeted reforms such as closing tax loopholes or rebalancing spending and revenue, which may be more practical and durable than broad, constitutionally complicated wealth taxes.<\/p>\nBusiness Leaders React to California’s Wealth Tax Proposal – Business Insider<\/a>
<\/u>California\u2019s wealth tax proposal has triggered a sharp split among high-profile business leaders and tech figures. Some are threatening or already moving assets and residency out of the state while others downplay the impact. Critics such as Bill Ackman, Ben Horowitz, Palmer Luckey, and more argue the wealth tax is effectively expropriation, would hit illiquid \u201cpaper billionaires,\u201d push founders to prioritize short-term profit, and accelerate capital and talent flight to places like Texas, Florida, Austin, and Miami. Supporters like Rep. Ro Khanna (D-CA) and Nvidia CEO Jensen Huang argue innovation will persist because of California\u2019s talent base and that modest wealth taxation can help address inequality and fund healthcare.<\/p>\nWill California’s Billionaire Tax Be Paid By Non-Billionaires Too? – Forbes<\/a>
<\/u>California\u2019s wealth tax proposal will likely be felt well beyond the small group of ultra\u2011rich targets, with potential costs and risks borne by ordinary Californians as well. Expert revenue estimates conflict wildly, and the article notes that, once capital flight is modeled, some analyses suggest the state could lose net tax revenue rather than gain it. Administering and litigating a complex wealth tax would be expensive and difficult, and it could accelerate corporate and high\u2011earner relocations and deter future investment, ultimately forcing higher taxes or diminished job opportunities for non\u2011billionaires.<\/p>\nThe Wealth Tax Is Popular but Faces Serious Obstacles – Jacobin<\/a>
Conor Lynch argues that while a wealth tax on billionaires has become increasingly popular amid and growing public anger over oligarchic power, enacting such a tax at the federal level faces steep political and constitutional barriers. It traces emerging proposals from Sen. Bernie Sanders (I-VT), Rep. Khanna, Sen. Elizabeth Warren (D-MA), and others and notes how exploding top-end wealth has expanded their revenue potential. Lynch emphasizes that passage would require unlikely congressional majorities and then surviving a Supreme Court that is hostile to expansive tax powers. Much of the discussion centers on the Constitution\u2019s \u201capportionment\u201d requirement for direct taxes and the conservative Court\u2019s likely view that a straightforward national wealth tax, or even an unrealized gains tax, would be unconstitutional, suggesting advocates may either need complex workarounds or accept a confrontational strategy that forces the Court to strike down a popular reform and potentially invites a longer-term backlash.<\/p>\nHow will proposed California billionaire tax affect Miami? – Miami Herald<\/a>
California\u2019s wealth tax proposal is influencing high\u2011end migration patterns and generating keen interest among Miami\u2011area luxury brokers and developers. Some South Florida real estate agents expect the measure to push more ultra\u2011rich Californians toward low\u2011tax Florida and have already seen increased inquiries and purchases by tech and finance billionaires. Experts caution that changing residency is complex and the tax is retroactive to where billionaires lived on January 1, 2026, limiting how much an after\u2011the\u2011fact move to Miami can actually shield them.<\/p>\nWashington<\/strong><\/h4>\nWA won’t know if millionaire tax repeal bid qualifies until after July 2 \u2013 King 5<\/a>
Washington officials will not know until after July 2 whether an initiative to repeal the state\u2019s millionaire tax has qualified for the November ballot. The Secretary of State must first receive petitions, count pages and signatures, and then validate them. The measure titled \u201can Initiative Prohibiting Individual Income Taxes,\u201d needs about 309,000 valid signatures (with sponsors aiming for roughly 400,000 to account for invalid ones). There is also a parallel legal challenge by a coalition, Let\u2019s Go Washington, including former state officials who have sued to overturn the millionaire tax on constitutional grounds, arguing Washington precedent treats income as property that must be taxed uniformly.<\/p>\n[\/et_pb_text][et_pb_cta title=”Want to learn more?” button_url=”https:\/\/familyenterpriseusa.com\/polling-and-research\/wealth-tax\/” button_text=”Visit our State and Federal Wealth Tax Tracker – Click Here ” admin_label=”State and Federal Wealth Tax Tracker CTA” _builder_version=”4.27.6″ _module_preset=”default” background_color=”#fc2f36″ custom_padding=”13px||18px|||” global_module=”17129″ global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Brownstein Hyatt Farber Schreck Logo & About” _builder_version=”4.22.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.bhfs.com\/” link_option_url_new_window=”on” border_color_all=”#FFFFFF” border_style_all=”none” global_module=”6751″ global_colors_info=”{}”]<\/p>\n
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The need for fact-based reporting of issues important to family owned businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, successful families<\/a> and family owned businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to family owned businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n[\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” divider_weight=”2px” disabled_on=”on|on|on” _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”on|on|on” admin_label=”Video Slider Family Business Stories 2″ _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_module=”6670″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=y9VszpRjVDM” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=03T2VODneEg” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=fHIxWaTwK64″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=TI7P07GbNdU&t=27s” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n
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#incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA #FEUSA<\/p>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
This week\u2019s wealth tax coverage was dominated by Gov. Newsom\u2019s call for a national \u201cbillionaires tax\u201d while reiterating his opposition to California\u2019s state-level ballot measure\u2014a stance widely criticized across the political spectrum as inconsistent political positioning ahead of a potential 2028 presidential run. \u00a0 Commentary focused on constitutional barriers to a federal wealth tax, the […]<\/p>\n","protected":false},"author":2,"featured_media":17763,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,92,115],"tags":[],"class_list":["post-17757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-multi-generational-business","category-wealth-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17757"}],"version-history":[{"count":5,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17757\/revisions"}],"predecessor-version":[{"id":17765,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17757\/revisions\/17765"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/17763"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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Please find summaries of relevant articles with web links below.<\/strong> Please reach out to any member of your Brownstein National Tax Policy Group team with questions or to set up a meeting.<\/a><\/p>\n California Wealth Tax Initiative 2026: Latest Polls – The New York Times<\/a> Gavin Newsom calls for national billionaires tax: ‘Economic reset\u2019 – CNBC<\/a> The Founders Wouldn\u2019t Back a \u2018Billionaire Tax\u2019 – WSJ<\/a> The Socialist Wave, West Coast Version – WSJ<\/a> Newsom\u2019s political chops will be tested by wealth tax fight \u2013 Orange County Register<\/a> Opinion | Gavin Newsom\u2019s wealth tax two-step – The Washington Post (Gift Link)<\/a> Heidi Heitkamp on the wealth tax: It’s no surprise that Gov. Gavin Newsom opposes it in California – CNBC<\/a> Business Leaders React to California’s Wealth Tax Proposal – Business Insider<\/a> Will California’s Billionaire Tax Be Paid By Non-Billionaires Too? – Forbes<\/a> The Wealth Tax Is Popular but Faces Serious Obstacles – Jacobin<\/a> How will proposed California billionaire tax affect Miami? – Miami Herald<\/a> WA won’t know if millionaire tax repeal bid qualifies until after July 2 \u2013 King 5<\/a> [\/et_pb_text][et_pb_cta title=”Want to learn more?” button_url=”https:\/\/familyenterpriseusa.com\/polling-and-research\/wealth-tax\/” button_text=”Visit our State and Federal Wealth Tax Tracker – Click Here ” admin_label=”State and Federal Wealth Tax Tracker CTA” _builder_version=”4.27.6″ _module_preset=”default” background_color=”#fc2f36″ custom_padding=”13px||18px|||” global_module=”17129″ global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Brownstein Hyatt Farber Schreck Logo & About” _builder_version=”4.22.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.bhfs.com\/” link_option_url_new_window=”on” border_color_all=”#FFFFFF” border_style_all=”none” global_module=”6751″ global_colors_info=”{}”]<\/p>\n About Brownstein Hyatt Farber Schreck [\/et_pb_text][et_pb_divider color=”#397389″ divider_weight=”2px” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Become a member text” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5822″ global_colors_info=”{}”]<\/p>\n As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a member.<\/p>\n The need for fact-based reporting of issues important to family owned businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, successful families<\/a> and family owned businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to family owned businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider color=”#397389″ divider_style=”dotted” divider_weight=”2px” disabled_on=”on|on|on” _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”on|on|on” admin_label=”Video Slider Family Business Stories 2″ _builder_version=”4.27.4″ _module_preset=”default” disabled=”on” global_module=”6670″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=y9VszpRjVDM” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=03T2VODneEg” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=fHIxWaTwK64″ _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=TI7P07GbNdU&t=27s” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Family Enterprise USA<\/a> promotes generationally<\/a> owned family business<\/a> creation, growth, viability, and sustainability by advocating for family businesses<\/a> and their lifetime of savings with Congress<\/a> in Washington DC.\u00a0 Since 2007, Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0Family foundations can donate.<\/a><\/p>\n [\/et_pb_text][et_pb_text disabled_on=”on|on|on” admin_label=”Hash tags & Tags” _builder_version=”4.27.6″ _module_preset=”default” disabled=”on” global_module=”6498″ global_colors_info=”{}”]<\/p>\n #incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA #FEUSA<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" This week\u2019s wealth tax coverage was dominated by Gov. Newsom\u2019s call for a national \u201cbillionaires tax\u201d while reiterating his opposition to California\u2019s state-level ballot measure\u2014a stance widely criticized across the political spectrum as inconsistent political positioning ahead of a potential 2028 presidential run. \u00a0 Commentary focused on constitutional barriers to a federal wealth tax, the […]<\/p>\n","protected":false},"author":2,"featured_media":17763,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,92,115],"tags":[],"class_list":["post-17757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-multi-generational-business","category-wealth-tax"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17757"}],"version-history":[{"count":5,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17757\/revisions"}],"predecessor-version":[{"id":17765,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/17757\/revisions\/17765"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/17763"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
The New York Times has set up a page on their website tracking recent polling on the California wealth tax proposal. We will regularly include this in future editions of our updates.<\/p>\nCalifornia<\/strong><\/h4>\n
Gov. Newsom called for a nationwide \u201cbillionaires tax\u201d as part of a broader \u201ceconomic reset.\u201d He is proposing a minimum tax on the ultra-wealthy, closing loopholes like \u201cbuy, borrow, die,\u201d\u00a0returning corporate tax rates to pre-2017 levels, revising inheritance rules, and creating a national public equity fund tied to AI-driven growth. While positioning the agenda as helping working Americans and signaling potential 2028 presidential ambitions, Gov. Newsom reiterated his opposition to the wealth tax proposal imposing a state-level wealth tax, while arguing that such policies are ineffective at the state level because wealthy individuals can relocate and that the issue should be addressed federally.<\/p>\n
Jonathon Turley, a law professor at George Washington University\u2019s Law School, argued that Gov. Newsom\u2019s call for a national \u201cbillionaire tax\u201d misunderstands the Founders\u2019 intent, asserting that Madison, Locke, and other key figures designed the constitutional system to limit concentrations of\u00a0political\u00a0power, not wealth. He argues that the Founders\u2019 intent also protected private property through mechanisms like the Fifth Amendment\u2019s Takings Clause. Turley argues that a federal wealth tax would be unconstitutional as a direct tax on property, criticizes Gov. Newsom for using founders\u2019 rhetoric to justify redistribution while opposing California\u2019s own wealth tax proposal due to wealth flight and fiscal strain. He warns that progressive strategies such as court-packing and wealth taxes could gradually expand from billionaires to ordinary property owners in a way that reflects \u201cMamdanian,\u201d not Madisonian, democracy.<\/p>\n
The Wall Street Journal Editorial Board argued that Gov. Newsom is trying to straddle a line between Silicon Valley donors and an upcoming socialist left by opposing California\u2019s ballot wealth tax while endorsing a national one. The Board frames the national tax as inconsistent with the Founders despite constitutional concerns about wealth taxes as direct takings of property. The Board faults him for refusing to seriously confront unions pushing the state measure, suggests the state tax would harm entrepreneurship without fixing budget problems rooted in spending, and warns that his effort to appease the socialist wing may backfire politically as that faction grows more assertive.<\/p>\n
The Editorial Board argues that Gov. Newsom is trying to balance political pressures as he opposes the wealth tax proposal ballot measure backed by SEIU-UHW while simultaneously endorsing the idea of a national billionaire tax to maintain credibility with the political left ahead of a potential 2028 presidential run. The Board criticizes both the union\u2019s proposal, calling it poorly designed, overly targeted toward healthcare spending, and likely to drive wealthy residents out of the state, and Newsom\u2019s positioning. The Board suggests his objections are more about control over how revenues are allocated than about principle. The board ultimately supports rejecting the ballot measure and frames the situation as a test of Newsom\u2019s political maneuvering.<\/p>\n
The Washington Post Editorial Board criticized Gov. Newsom for what it portrays as an inconsistent \u201ctwo-step\u201d on wealth taxes, opposing a California ballot measure while advocating for a national version, arguing that if such a tax is flawed at the state level, it would be even more problematic federally. The Board argues that wealth taxes are ineffective, difficult to administer, and have largely failed in other countries, while also raising constitutional concerns about a federal wealth tax as a direct tax. It further suggests Gov. Newsom\u2019s proposal broadens beyond billionaires to target a wider group of high earners and frames his stance as politically motivated positioning ahead of a potential presidential run rather than sound economic policy.<\/p>\n
Former Sen. Heidi Heitkamp (D-ND) and former White House Chief of Staff Mick Mulvaney underscored that \u201cwealth tax\u201d is an imprecise label covering very different concept, ranging from personal\u2011property\u2011style taxes on net worth to unrealized gains, and that none of the national proposals have been fleshed out enough to resolve major legal and administrative questions. Sen. Heitkamp argued that it is unsurprising Gov. Newsom opposes a California-only wealth tax because mobile capital and high\u2011net\u2011worth residents can simply leave. Mulvaney frames Newsom\u2019s call for a federal billionaire tax as political positioning that lets him appeal to progressives without harming his state\u2019s competitiveness. Both emphasize that extreme wealth concentration is a real problem but suggest more targeted reforms such as closing tax loopholes or rebalancing spending and revenue, which may be more practical and durable than broad, constitutionally complicated wealth taxes.<\/p>\n
<\/u>California\u2019s wealth tax proposal has triggered a sharp split among high-profile business leaders and tech figures. Some are threatening or already moving assets and residency out of the state while others downplay the impact. Critics such as Bill Ackman, Ben Horowitz, Palmer Luckey, and more argue the wealth tax is effectively expropriation, would hit illiquid \u201cpaper billionaires,\u201d push founders to prioritize short-term profit, and accelerate capital and talent flight to places like Texas, Florida, Austin, and Miami. Supporters like Rep. Ro Khanna (D-CA) and Nvidia CEO Jensen Huang argue innovation will persist because of California\u2019s talent base and that modest wealth taxation can help address inequality and fund healthcare.<\/p>\n
<\/u>California\u2019s wealth tax proposal will likely be felt well beyond the small group of ultra\u2011rich targets, with potential costs and risks borne by ordinary Californians as well. Expert revenue estimates conflict wildly, and the article notes that, once capital flight is modeled, some analyses suggest the state could lose net tax revenue rather than gain it. Administering and litigating a complex wealth tax would be expensive and difficult, and it could accelerate corporate and high\u2011earner relocations and deter future investment, ultimately forcing higher taxes or diminished job opportunities for non\u2011billionaires.<\/p>\n
Conor Lynch argues that while a wealth tax on billionaires has become increasingly popular amid and growing public anger over oligarchic power, enacting such a tax at the federal level faces steep political and constitutional barriers. It traces emerging proposals from Sen. Bernie Sanders (I-VT), Rep. Khanna, Sen. Elizabeth Warren (D-MA), and others and notes how exploding top-end wealth has expanded their revenue potential. Lynch emphasizes that passage would require unlikely congressional majorities and then surviving a Supreme Court that is hostile to expansive tax powers. Much of the discussion centers on the Constitution\u2019s \u201capportionment\u201d requirement for direct taxes and the conservative Court\u2019s likely view that a straightforward national wealth tax, or even an unrealized gains tax, would be unconstitutional, suggesting advocates may either need complex workarounds or accept a confrontational strategy that forces the Court to strike down a popular reform and potentially invites a longer-term backlash.<\/p>\n
California\u2019s wealth tax proposal is influencing high\u2011end migration patterns and generating keen interest among Miami\u2011area luxury brokers and developers. Some South Florida real estate agents expect the measure to push more ultra\u2011rich Californians toward low\u2011tax Florida and have already seen increased inquiries and purchases by tech and finance billionaires. Experts caution that changing residency is complex and the tax is retroactive to where billionaires lived on January 1, 2026, limiting how much an after\u2011the\u2011fact move to Miami can actually shield them.<\/p>\nWashington<\/strong><\/h4>\n
Washington officials will not know until after July 2 whether an initiative to repeal the state\u2019s millionaire tax has qualified for the November ballot. The Secretary of State must first receive petitions, count pages and signatures, and then validate them. The measure titled \u201can Initiative Prohibiting Individual Income Taxes,\u201d needs about 309,000 valid signatures (with sponsors aiming for roughly 400,000 to account for invalid ones). There is also a parallel legal challenge by a coalition, Let\u2019s Go Washington, including former state officials who have sued to overturn the millionaire tax on constitutional grounds, arguing Washington precedent treats income as property that must be taxed uniformly.<\/p>\n<\/p>\n
<\/strong>Brownstein Hyatt Farber Schreck is a unique law firm. Walk into any of our offices and you\u2019ll immediately recognize a different type of energy. Complacency doesn\u2019t have a place here. Flexibility and inspiration do.\u00a0Our culture and enthusiasm allow our attorneys, policy consultants and legal staff to stay ahead of our clients\u2019 needs and provide them with the resources they require to meet their business objectives.<\/p>\nWe hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…<\/em><\/h4>\n
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