A wealth tax is emerging as a major issue in the 2028 Democratic primaries. Rep. Alexandria Ocasio-Cortez of New York, Sen. Chris Van Hollen of Maryland, and Rep. Ro Khanna of California have championed measures to increase taxes on the wealthiest Americans.
However, moderate Democratic figures argue that such tax initiatives are anti-business, legally unfeasible, and often misdirected as solutions for wealth inequality rather than mechanisms to fund expanded social programs.
California Governor Gavin Newsom has repeatedly opposed wealth tax proposals in his state. Progressives, including Khanna, have urged Newsom to support legislation imposing a one-time tax on Californians earning more than $1 billion annually. Senator Chris Murphy of Connecticut recently visited Los Angeles to express backing for the measure.
Newsom contends that implementing such a tax would harm California’s economy and incentivize its wealthiest residents to move elsewhere. The governor, who is also a potential 2028 presidential candidate, has not ruled out advocating for a national wealth tax.
An organization called “Tax the Greedy Billionaires” has been formed to highlight the issue. Igor Volsky, the group’s campaign director, stated that candidates in the 2028 race should acknowledge that “extreme wealth is a crisis.”
In recent remarks, Newsom emphasized the need for progressive tax reforms, noting that states like Texas and Florida impose higher taxes on low-wage workers than the wealthy. He described such policies as being about “who you are for.”
Additionally, polling data from MoveOn indicates that Democratic voters would view Newsom less favorably if they believed he opposed raising taxes on high-income earners.
