Gavin Newsom opposes the billionaire tax. Then he endorses a measure funded by Google co-founder: ‘showing California his true colors’

Governor Gavin Newsom has officially endorsed Proposition 42, a move that places him in direct opposition to the proposed billionaire tax known as Proposition 40, Cal Matters reports. This endorsement, announced on Friday, effectively works to cancel out the proposed wealth tax by prohibiting retroactive taxes on assets for any billionaire living in California on January 1, 2026.

Beyond just blocking the current proposal, Proposition 42 goes further by banning any new taxes on personal property, including pensions, 401K accounts, business holdings, art collections, and various other financial assets. The endorsement is a significant development that puts the governor at odds with his own Democratic Party and several labor unions.

It signals a continued alignment with wealthy tech donors, a relationship dynamic that dates back to his time as the mayor of San Francisco. While proponents of the billionaire tax are frustrated, supporters of Proposition 42 argue that middle-class retirement savings need protection from state taxes. “We all agree that Californians deserve to have their retirement and life savings protected from new state taxes so those savings are there when they need them,” Newsom said in a statement released by the proponents.

This stance has drawn sharp criticism from those who support the wealth tax

Critics view the governor’s decision as a clear indication of his priorities. Debru Carthan, the vice president of Service Employees International Union-United Healthcare Workers West, did not hold back in a recent statement. “By voting yes on Prop 42, he’s showing California his true colors,” Carthan said. “He’d rather millions of children and families lose their healthcare than ask a couple hundred billionaires to finally pay their fair share.”

The billionaire tax, which is funded by a healthcare union, aims to direct 90 percent of collected revenue toward Medi-Cal, the state program for low-income residents. Opponents of the tax, including the governor and most Republicans, have long argued that such measures might drive the wealthy out of the state, ultimately hurting tax revenue.

The primary funder behind Proposition 42 is Google co-founder Sergey Brin. Although Brin has never donated to Newsom, the two have maintained a personal relationship for years and even attended each other’s weddings.

This connection has become a focal point for critics like Democratic California Representative Ro Khanna. During a recent rally for the billionaire tax, Khanna suggested that donor relations are the primary driver behind the governor’s opposition. “You can’t be anti-Trump and then do the bidding of Trump donors,” Khanna said in a video with progressive former congressional candidate Saikat Chakrabarti.

This creates an interesting contrast with the governor’s own recent policy suggestions. This summer, Newsom proposed a national tax on the wealthy, which includes a minimum tax rate for individuals with a net worth over $100 million. He has also expressed interest in undoing corporate tax cuts approved by President Donald Trump and Congress in 2017, while also pushing to close loopholes related to unrealized capital gains.

As of now, the governor has not taken a position on Proposition 41, another measure backed by Brin that would subject tax revenues to specific spending limits and audits. These decisions come as part of a larger set of endorsements for the 14 ballot measures Californians are currently considering.

Among his other positions, Newsom opposes the Republican-backed voter ID measure, Proposition 39, and Proposition 43, which would make passing local taxes more difficult. He also opposes Proposition 44, a measure supported by health unions regarding spending requirements for clinics serving low-income patients.

He has yet to weigh in on Proposition 45, which deals with environmental review processes for new developments.