California Governor Gavin Newsom is calling for a sweeping federal wealth redistribution plan that would establish a floor on what the ultra-rich pay in taxes and funnel AI industry profits into an ownership fund for ordinary Americans.
The proposal arrives just as Newsom was unable to keep a separate billionaire tax measure off the California ballot.
Released Friday via Substack, the plan would apply a mandatory minimum tax rate to anyone whose net worth reaches at least $100 million, shut down existing loopholes that benefit the ultra-wealthy, and create a fund designed to give every American a financial stake in the AI sector.
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Newsom pointed to deepening wealth concentration as the driving force behind the proposal, noting that 10% of Americans now hold roughly two-thirds of the country’s wealth.
The timing is notable. Newsom has publicly opposed a California initiative that would place a one-time 5% levy on state residents worth more than $1.1 billion, with 90% of the proceeds earmarked for healthcare and the remainder split between education and food assistance. He argues his objection centers on how that revenue would be spent rather than on the principle of taxing the ultra-wealthy. His failure to keep the California measure off the ballot now leaves him in the unusual position of championing a broader federal version while fighting the state one.
The two positions have divided California Democrats. Xavier Becerra, widely seen as the frontrunner to succeed Newsom as governor, also opposes the state measure. Rep. Ro Khanna, himself a rumoured 2028 presidential contender, and billionaire activist Tom Steyer, who recently lost his own gubernatorial bid, have both backed it.
The AI ownership fund component addresses a separate anxiety about automation. Newsom argued that as artificial intelligence reshapes the labour market, Americans should hold a direct financial stake in the industries driving that change rather than simply bearing the disruption costs.
The broader political subtext is hard to miss. With Newsom widely expected to seek the Democratic presidential nomination in 2028, the proposal lands squarely on terrain where the party’s base has grown increasingly restless. Rising food and fuel costs have amplified public frustration over wealth inequality, and Democratic leaders are under mounting pressure to take sharper stances on the issue.
A national wealth tax, however difficult to pass through Congress, serves as a clear ideological marker heading into that cycle.
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