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Gavin Newsom’s (D-Calif.) rise from a Getty-backed entrepreneur to California governor now collides with a proposed billionaire wealth tax<\/a> he calls “bad economics” and has vowed to defeat.<\/p>\n Newsom’s first major business success came in the early 1990s with PlumpJack, a San Francisco wine shop launched with financial backing<\/a> from Gordon Getty, an oil heir and longtime family friend.<\/p>\n Getty and his family later invested in Newsom’s expanding portfolio of wineries, restaurants and hotels, helping turn him into a multimillionaire before he entered statewide office.<\/p>\n Don’t Miss:<\/p>\n At the same time, after his parents divorced, the governor and his sister were largely raised by their mother, who worked multiple jobs to support the family.<\/p>\n That dual background now frames California’s intensifying debate over the proposed 2026 Billionaire Tax Act, a ballot initiative backed by a powerful health care workers’ union.<\/p>\n The measure would impose a one-time 5% tax on assets exceeding $1 billion for California residents, payable over several years.<\/p>\n Supporters argue the tax could raise tens of billions of dollars for public services while addressing widening inequality.<\/p>\n Critics, including Newsom, warn it could trigger capital flight<\/a> and destabilize a state budget that already relies heavily on high-income taxpayers.<\/p>\n Trending: Jeff Bezos-Backed Arrived Homes Hits A Big Sale On Charlotte Property \u2013 Investors Earning A 34.7% Return<\/a><\/p>\n Newsom has emerged as one of the initiative’s most vocal opponents, arguing that a state-level wealth tax would drive billionaires and businesses out of California.<\/p>\n In an interview<\/a> with The New York Times, he said the proposal’s mere introduction has already pushed some wealthy residents to relocate.<\/p>\n Bloomberg has reported that at least six billionaires have left the state.<\/p>\n At the same time, tech leaders such as venture capitalist Chamath Palihapitiya and hedge fund manager Bill Ackman have publicly criticized the plan as hostile to innovation<\/a>.<\/p>\n