Gavin Newsom Declares New Wealth Tax Dead On Arrival In California

Governor Gavin Newsom’s office confirmed this week that Newsom opposes Assembly Bill 259, wealth tax legislation introduced in January by Assemblyman Alex Lee (D). Warren and other advocates for a national wealth tax must grapple with the reality that even fellow progressives like Gavin Newsom reject their idea. In defending his wealth tax rejection, Newsom has a lot of evidence to point to demonstrating how wealth taxes have proven to be an unreliable source of revenue and economically damaging form of taxation. A 2018 OECD report on wealth taxes, for example, finds that risk taking and the propensity for people to engage in entrepreneurship is greatly diminished by a wealth tax. Despite all the media coverage and hype surrounding these proposals, as Gavin Newsom’s newly-confirmed opposition to the recently-introduced California wealth tax bill demonstrates, few if any of these tax hikes are likely to become law.

 

https://www.atr.org/gavin-newsom-declares-new-wealth-tax-dead-on-arrival-in-california/