Newsom sticks to opposition as California billionaire tax fight escalates

California Gov. Gavin Newsom refuses to back a compromise reducing a proposed 5% wealth tax on the state’s billionaires, saying he remains opposed to a California-only wealth tax. A union-led coalition had urged support for a 2% wealth tax in exchange for withdrawing its ballot initiative, arguing the levy could help prevent Medicaid/Medicare-like healthcare cuts. Supporters, including Rep. Ro Khanna, frame the move as a moral test for the Democratic Party and a chance to protect healthcare for Californians, while Newsom stands firm against the plan.