Fox Business’ Kelly Saberi reports on California’s proposed wealth tax, where proponents offer to reduce the rate from 5% to 2%. Gov. Gavin Newsom rejects any wealth tax, citing concerns about defunding public services.
California wealth tax backers propose reducing the rate from 5% to 2%, but Governor Gavin Newsom firmly opposes any wealth tax, arguing it would defund teachers, schools, clinics, and public safety. FOX Business’ Kelly Saberi reports on differing revenue estimates, with the Hoover Institution predicting a net negative impact of $24.7 billion. This debate over ‘socialist policies’ highlights the economic challenges facing blue states.