{"id":48814,"date":"2026-06-23T11:43:33","date_gmt":"2026-06-23T18:43:33","guid":{"rendered":"https:\/\/occupysf.net\/?p=48814"},"modified":"2026-06-23T11:43:34","modified_gmt":"2026-06-23T18:43:34","slug":"the-world-is-watching-top-economist-rips-newsom-for-working-to-tank-billionaire-wealth-tax","status":"publish","type":"post","link":"https:\/\/occupysf.net\/index.php\/2026\/06\/23\/the-world-is-watching-top-economist-rips-newsom-for-working-to-tank-billionaire-wealth-tax\/","title":{"rendered":"\u2018The World Is Watching\u2019: Top Economist Rips Newsom for Working to Tank Billionaire Wealth Tax"},"content":{"rendered":"\n
\"California<\/figure>\n\n\n\n

California Gov. Gavin Newsom speaks to reporters inside the US Capitol in Washington, DC on May 20, 2026.\u00a0(Photo by Nathan Posner\/Anadolu via Getty Images)<\/em><\/p>\n\n\n\n

\u201cYou have chosen to protect California\u2019s billionaires at the expense of Californians\u2019 health,\u201d said Gabriel Zucman.<\/h2>\n\n\n\n

Jake Johnson<\/a><\/p>\n\n\n\n

Jun 22, 2026<\/p>\n\n\n\n

A world-renowned economist and expert on wealth inequality<\/a> castigated California Gov. Gavin Newsom<\/a> on Monday for working to kill a proposed tax on billionaire fortunes in the Golden State, warning that the Democratic leader and likely 2028 candidate appears bent on handing President Donald Trump<\/a> \u201can unexpected ideological and political victory.\u201d<\/p>\n\n\n\n

Gabriel Zucman, a research professor of economics at the University of California, Berkeley, pointed to a recent Bloomberg story<\/a> detailing Newsom\u2019s \u201clast-ditch pressure campaign\u201d to prevent a healthcare<\/a> union-led initiative from appearing on California voters\u2019 ballots in November. Last week, organizers announced<\/a> that they had collected the number of signatures required to get the initiative\u2014a one-time, 5% tax on the wealth of California billionaires\u2014on the ballot ahead of the June 25 deadline.<\/p>\n\n\n\n

RECOMMENDED…<\/p>\n\n\n\n

\"California<\/a><\/figure>\n\n\n\n

Failing \u2018Moral Test,\u2019 Newsom Rejects Compromise 2% Wealth Tax on California Billionaires<\/a><\/h2>\n\n\n\n
\"People<\/a><\/figure>\n\n\n\n

\u2018Unlikely Bedfellows\u2019: Left-Leaning Groups Join Newsom-Backed Effort to Sink California Billionaire Tax<\/a><\/h2>\n\n\n\n

In a lengthy thread<\/a> posted to X on Monday, Zucman wrote that he is \u201cshocked\u201d by Newsom\u2019s \u201cefforts to defend Peter Thiel and Mark Zuckerberg<\/a> at the expense of Californians\u2019 health,\u201d referring to two of the state\u2019s most prominent billionaires. Thiel has donated millions<\/a> to an industry group looking to defeat the ballot initiative, which would use revenue from the wealth tax to offset the impacts of federal Medicaid<\/a> cuts approved last year by Trump and congressional Republicans<\/a>.<\/p>\n\n\n\n

\u201cYet you are now devoting all your energy to preventing this ballot initiative from taking place and denying Californians the opportunity to express their democratic will this November,\u201d Zucman wrote. \u201cYou have chosen to protect California\u2019s billionaires at the expense of Californians\u2019 health.\u201d<\/p>\n\n\n\n

By stridently opposing the proposed billionaire tax in California, the economist warned, Newsom is lending credence to \u201cfamiliar conservative arguments against taxing great fortunes: the threat of capital flight, tax avoidance, harm to growth, etc.\u201d<\/p>\n\n\n\n

No paywall. No ads. No billionaire owner. Just you.<\/strong><\/h2>\n\n\n\n

Common Dreams is funded exclusively by readers tired of news beholden to corporate interests. Our monthly supporters are the backbone of what makes that possible. Help us reach our Mid-Year Campaign goal of 450 new monthly supporters by July 1.<\/h3>\n\n\n\n

\u201cInstead of reinforcing these arguments, you could have chosen to challenge them. Take the risk of tax flight, a classic objection. It is effectively nonexistent,\u201d Zucman wrote. \u201cBeyond the ideological victory you risk handing Trump, you may also be giving him a political victory.\u201d<\/p>\n\n\n\n

Politically, Zucman warned Newsom that his opposition to the proposed wealth tax\u2014which has proven extremely popular<\/a> among likely Democratic voters\u2014risks giving Trump and his right-wing<\/a> allies a political victory by blunting momentum for a wealth tax not only in California, but beyond as well.<\/p>\n\n\n\n

\u201cIf the \u2018Yes\u2019 prevails, California\u2019s tax could quickly inspire similar efforts in other states,\u201d Zucman argued. \u201cUltimately, that process could pave the way for a federal tax on extreme wealth. This is precisely what happened<\/a> more than a century ago with the progressive income tax.\u201d<\/p>\n\n\n\n

\u201cThe world is watching,\u201d the economist added. \u201cIn the struggle between democracy<\/a> and oligarchy<\/a>, one must choose a side. I hope you will choose ours.\u201d<\/p>\n\n\n\n

Zucman has been outspoken in support of the proposed wealth tax in California, writing in The New York Times\u2019 op-ed pages<\/a> last month alongside fellow economist Emmanuel Saez that the proposed levy would \u201cbe tiny relative to billionaires\u2019 recent wealth gains.\u201d<\/p>\n\n\n\n

\u201cIn the past three years alone, the total wealth of California\u2019s billionaires grew by a staggering 144%, to over $2 trillion,\u201d the economists wrote. \u201cCritics of the ballot measure have voiced concerns that even a small number of billionaires leaving the state would lead to lower state tax revenues overall. Their math doesn\u2019t add up. California\u2019s billionaires currently pay such a low tax rate that even if all of them left the state, it would take 25 years for the loss of their tax payments under the current set of rules to surpass the amount the state would raise if the one-time tax succeeds this fall.\u201d<\/p>\n\n\n\n

\u201cDefending 200 billionaires at the expense of the millions of Californians who will lose healthcare absent the passage of a billionaire tax is not a tenable position for the governor or the state of California.\u201d<\/p>\n\n\n\n

Last week, organizers of the wealth tax initiative offered to withdraw its proposal if Newsom threw his support behind legislation imposing a 2% tax on California\u2019s billionaires\u2014a compromise plan that the governor swiftly rejected.<\/p>\n\n\n\n

\u201cThe governor supports making the wealthiest Americans pay their fair share, but this poorly designed state-only measure will defund teachers, schools, clinics, and public safety,\u201d said Newsom spokesperson Tara Gallegos. \u201cChanging the tax rate doesn\u2019t change this measure\u2019s fundamental flaws that harm working Californians.\u201d<\/p>\n\n\n\n

Suzanne Jimenez, chief of staff for the Service Employees International Union-United Healthcare Workers<\/a> West\u2014the union leading the ballot initiative\u2014hit back, accusing Newsom\u2019s office of \u201cengaging in Trump-like misinformation tactics, which is sad and indefensible.\u201d<\/p>\n\n\n\n

\u201cThe billionaire tax explicitly funds clinics, hospitals, schools, teachers, and food assistance to the tune of billions,\u201d Jimenez said in an emailed statement. \u201cAll objective reports have shown that the wealth tax raises billions to fund healthcare, education, and food assistance\u2014and the revenue that will be raised far surpasses any potential income tax erosion\u2014in no small part because billionaires pay very little relative income tax.\u201d<\/p>\n\n\n\n

\u201cDefending 200 billionaires at the expense of the millions of Californians who will lose healthcare absent the passage of a billionaire tax is not a tenable position for the governor or the state of California,\u201d Jimenez added.<\/p>\n\n\n\n

Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.<\/p>\n\n\n\n

Jake Johnson<\/a><\/p>\n\n\n\n

Jake Johnson is a senior editor and staff writer for Common Dreams.<\/p>\n\n\n\n

Full Bio ><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

California Gov. Gavin Newsom speaks to reporters inside the US Capitol in Washington, DC on May 20, 2026.\u00a0(Photo by Nathan Posner\/Anadolu via Getty Images) \u201cYou have chosen to protect California\u2019s billionaires at the expense of Californians\u2019 health,\u201d said Gabriel Zucman. Jake Johnson Jun 22, 2026 A world-renowned economist and expert… Continue reading → <\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2072],"tags":[1078,255],"_links":{"self":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/48814"}],"collection":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/comments?post=48814"}],"version-history":[{"count":1,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/48814\/revisions"}],"predecessor-version":[{"id":48815,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/posts\/48814\/revisions\/48815"}],"wp:attachment":[{"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/media?parent=48814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/categories?post=48814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/occupysf.net\/index.php\/wp-json\/wp\/v2\/tags?post=48814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}