Newsom proposes federal billionaire tax and AI "public equity" fund
Summary
California Governor Gavin Newsom proposed a national minimum tax on billionaires and a federal fund that would give all Americans a share in the wealth created by artificial intelligence (AI). He opposes a state-level billionaire tax on the November California ballot, saying that taxing the ultrawealthy should be handled by the federal government, not by individual states.Key Facts
- Newsom wants a federal minimum billionaire tax that ensures the richest pay at least the same tax rate as their workers.
- He opposes California’s state billionaire tax measure, arguing it is better handled nationally to prevent billionaires from avoiding taxes by moving to other states.
- California’s billionaire tax revenues would mainly fund Medicaid, but Newsom believes the money should be allocated by the state legislature for broader needs like schools, housing, and child care.
- Newsom proposes ending tax strategies that let billionaires avoid income tax by borrowing against stock and passing wealth to heirs without taxes.
- He calls for raising corporate tax rates to pre-2017 levels and closing loopholes that allow companies to move profits offshore.
- Newsom wants a new federal AI public equity fund to share AI-generated wealth with workers and support those displaced by AI through benefits like severance and retraining.
- The AI fund would also help finance universal child care, free higher education, health care, and programs to build the economy for the “AI century.”
- Newsom is term-limited as California governor and is seen as a potential Democratic candidate for president in 2028.
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