California Governor Gavin Newsom has called for a National Billionaires Tax while asking voters to reject a new wealth tax proposal in his own state. His announcement has sparked a fresh debate over how the United States should tax its richest people. Newsom shared his plan one day after California officials approved a ballot measure that would place a one-time 5% tax on residents with a net worth above $1 billion. The proposal will now go before voters in the coming election. The California plan aims to raise money for healthcare, education, and food assistance programs. Supporters collected more than 1.6 million signatures to place the measure on the ballot. That total ranks among the largest signature drives in state history. Even with strong public support, the proposal has faced heavy criticism from business leaders and several major labor groups. Critics say the tax could make California's budget less stable and push wealthy residents to leave the state. Newsom has also opposed the ballot measure. He believes a state-level wealth tax would not solve the larger problem. Instead, he says it could reduce investment and weaken California's economy over time. The governor explained that many billionaires can move their money or even change where they live. Because of this, he believes state taxes alone cannot stop wealthy people from avoiding higher tax bills. Newsom argued that the issue should be handled by the federal government. He said a National Billionaires Tax would create the same rules across the country and reduce the chances of wealthy people moving to lower-tax states. As part of his proposal, Newsom wants a minimum tax for people whose net worth exceeds $100 million. He also wants new rules that would stop wealthy investors from borrowing against large stock holdings without paying taxes on that money. Another part of his plan focuses on artificial intelligence. Newsom believes the federal government should own a stake in leading AI companies. He says this would allow all Americans to benefit as the technology grows and creates new wealth. He also proposed changes to inheritance taxes. According to Newsom, large family fortunes should not continue growing across generations without stronger tax rules. He warned that this trend could increase the gap between rich and poor families. Newsom also wants to restore higher corporate tax rates that existed before earlier federal tax cuts. He believes the extra revenue could help pay for worker retraining, universal childcare, free college education, and expanded healthcare programs. The governor said these changes are becoming more important as artificial intelligence transforms the economy. He warned that AI could replace many jobs while creating even greater wealth for a small group of people unless new policies are introduced. His position has created a public disagreement with California Congressman Ro Khanna. Khanna fully supports the state ballot measure and believes California should lead the way before Congress acts. Khanna rejected Newsom's claim that billionaires would leave the state because of higher taxes. He pointed to strong venture capital investment in California during 2026 as evidence that businesses continue to invest despite tax concerns. According to Khanna, California remains the country's leading center for technology and innovation. He argued that the state's economy continues to attract investors and entrepreneurs. Khanna also criticized Newsom's federal proposal. He said the plan does not go far enough and would not place enough responsibility on the nation's wealthiest individuals. He argued that California voters should approve the ballot measure to encourage broader national tax reform. The debate highlights growing divisions within the Democratic Party over tax policy. Some leaders support stronger taxes on billionaires to reduce wealth inequality, while others worry about possible economic risks and capital flight. Political observers also note that Newsom's proposal comes as he continues to build a national profile ahead of the 2028 presidential election. Although he has not officially announced a campaign, many expect him to seek the Democratic nomination. By promoting a National Billionaires Tax while opposing California's state proposal, Newsom is presenting a different path. He argues that only nationwide tax reform can address wealth concentration without creating unfair competition between states. The coming California vote will test public opinion on taxing the ultra-rich. At the same time, Newsom's proposal has added new momentum to the national debate over wealth taxes, economic fairness, and the future of the American tax system.