Gavin Newsom is California\u2019s split-screen governor, willing to be whoever you want him to be.<\/p>\n
On one hand, he\u2019s fighting against a billionaire tax in California. On the other, he\u2019s telling voters nationally that we need a billionaire tax.<\/p>\n
In other words, he\u2019s full of it.<\/p>\n
Newsom\u2019s record of duplicity is long and unmistakable. He says he\u2019ll uphold the death penalty, then won\u2019t enforce it. He calls Trump a Nazi, then echoes him. He warns against indoor gatherings without masks, then dines maskless with lobbyists at one of the world\u2019s finest restaurants.<\/p>\n
And now he\u2019s for and against a billionaire tax.<\/p>\n
Here\u2019s Newsom recently<\/a>: \u201cIt\u2019s time for a national billionaire\u2019s tax and a new social contract.\u201d<\/p>\n And here\u2019s Newsom talking to Politico in January<\/a> about the California measure: \u201cThe evidence is in. The impacts are very real\u2026 That\u2019s not what we need right now, at a time of so much uncertainty. Quite the contrary.\u201d<\/p>\n Same man, similar tax, different months.<\/p>\n Newsom fears a billionaire tax in California would upend the state budget by driving billionaires out of state, because they prop up the budget already. And he understands that a billionaire tax threatens California entrepreneurship and innovation.<\/p>\n But those concerns fall away when pitching an ongoing minimum tax on billionaires<\/a> nationally.<\/p>\n How does Newsom explain such an absurd lack of conviction? Newsom says it\u2019s about competition.<\/p>\n \u201cWe live in a competitive reality with 49 other states,\u201d Newsom told Politico.<\/p>\n Newsom must have forgotten we\u2019re competing with other nations as well. And when did he become so concerned with California\u2019s tax competitiveness?<\/p>\n Just recently, Newsom argued the reason California needs to tax common software people use to save time and money is that it\u2019s one of the states that doesn\u2019t currently tax those services.<\/a><\/p>\n Newsom doesn\u2019t care that California has one of the top corporate tax<\/a> rates in the country. It also has one of the highest income tax rates,<\/a> the highest sales tax rate,<\/a> relatively high vehicle registration and documentation<\/a> fees, the highest gas tax and<\/a> the nation\u2019s highest capital gains<\/a> taxes. And so on.<\/p>\n He should consider a more compelling reason to oppose a billionaire tax: it is bad policy. The California measure forces billionaires to give a one-time tax of 5% of their wealth to the state and puts new billionaires in a bad position. You might ask \u201cWho cares?\u201d<\/p>\n \u201c(A California) billionaire tax is an unrealized gains tax. A unicorn startup founder becomes a paper billionaire around $5 billion value,\u201d Silicon Valley venture capitalist Garry Tan said on X.<\/a><\/p>\n \u201cThis will kill startups and innovation in California since a founder is illiquid while instantly on the hook for $100 million.\u201d<\/p>\n California also doesn\u2019t need the money. It\u2019s enjoying record revenues to go along with record spending and the state hasn\u2019t proven to be a good steward of money. You can\u2019t use billionaires as a backstop for bad government.<\/p>\n And if billionaires leave California as a result of this punitive measure, the state risks losing $30 billion annually for a short-term influx of around $25 billion per year for a few years, according to<\/a> my colleague at Pacific Research Institute, Wayne Winegarden.<\/p>\n Just think about the proposal itself: It would use a one time tax on a relatively small group of people to fund ongoing spending. This is a terrible budgeting idea.<\/p>\n But you don\u2019t need to take my word for it. Just look at what has happened when billionaire taxes have passed. France,<\/a> Sweden<\/a>, Germany<\/a>, Denmark<\/a> and the Netherlands all abandoned their billionaire taxes. Why? Because they didn\u2019t generate enough income, were difficult to administer, they drove away billionaires and were bad for the economy.<\/p>\n As usual, Newsom wants to have it both ways. Governor Newsom is fighting the California version because it\u2019s terrible policy, and he wants credit for opposing a tax, but Campaign Newsom also wants to be able to say he supports a tax because it\u2019s far less likely he\u2019d ever get Congress to agree on it. He supports a tax and opposes a tax. He\u2019s whoever you want him to be. It\u2019s similar to his support for single-payer health care while campaigning but his complete lack of action to implement it as governor.<\/p>\n Give him credit where it\u2019s due: Newsom has been remarkably successful for someone with so many versions of himself. But voters should always wonder which version is talking.<\/p>\n Matt Fleming is an opinion writer living in Placer County. You can follow him on X @Flemingwords or connect via email: flemingwords@gmail.com.<\/p>\n Related Stories from Sacramento Bee<\/p>\n","protected":false},"excerpt":{"rendered":"Gavin Newsom is California\u2019s split-screen governor, willing to be whoever you want him to be. 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