Gov. Gavin Newsom of California is no stranger to criticism and political jabs, but this time around, the attacks are coming from within the walls. Newsom is facing backlash from progressives after endorsing a ballot measure that could kill a proposed billionaire tax and prevent the state from imposing similar wealth taxes in the future. Hence, several critics from the left, including Newsom’s Democratic allies, have spoken out.
Newsom announced his support for Proposition 42 on Friday, October 9, putting him at odds with labor unions, the California Democratic Party, and prominent progressives backing Proposition 40, a proposed one-time 5 percent tax on the assets of billionaires who lived in the state on or after January 1, 2026.
The billionaire tax initiative would direct 90 percent of its revenue toward Medi-Cal, California’s healthcare program for low-income residents, with additional funding intended for food assistance and education. Proposition 42 would prohibit new state taxes on personal property, including financial assets and investments, effectively blocking the proposed billionaire tax and potentially preventing future wealth taxes.
Newsom defended his position by arguing that Californians’ retirement accounts and life savings should be protected from new taxes. However, critics say supporters of Proposition 42 are using middle-class concerns to undermine a proposal aimed at the ultrawealthy. The measure is backed by Building a Better California, a group funded by Google co-founder Sergey Brin and other wealthy donors.
Even Democrats are Against Newsom
Debru Carthan, vice president of Service Employees International Union-United Healthcare Workers West, which is leading the billionaire tax campaign, accused Newsom of siding with wealthy interests. “He’d rather millions of children and families lose their healthcare than ask a couple hundred billionaires to finally pay their fair share,” Carthan said.
Democratic Rep. Ro Khanna also criticized the governor, questioning his relationship with wealthy donors as speculation grows about Newsom’s potential 2028 presidential ambitions. “You can’t be anti-Trump and then do the bidding of Trump donors,” Khanna said during a rally supporting Proposition 40. Khanna has also criticized Newsom in the past, saying, “He’s siding with Trump donors like Sergey Brin and Peter Thiel.”
The controversy has also ignited criticism on Reddit, where users questioned Newsom’s progressive credentials and accused establishment Democrats of prioritizing wealthy donors over ordinary voters. “Corporate Democrats gonna corporate democrat,” one commenter wrote. Another asked, “Can we stop catering to billionaires already?”
Others suggested Newsom’s opposition was connected to his presidential ambitions. “Future Presidential Candidate Gavin Newsom knows who he needs to suck up to to get financial support for his future campaign,” one user assumed.
With the opposing propositions heading toward California’s November ballot, the latest billionaire tax dispute has revealed the cracks and a growing divide among Democrats over whether taxing billionaires is necessary to fund public services or risks driving wealth out of the state.
