Talk of the Town
(NEW YORK) — California Gov. Gavin Newsom said on Monday that the Department of Justice is investigating him as well as his wife, and claimed that President Donald Trump is “coming after me because I’m considering running for president.”
This is a developing story. Please check back for updates.
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(CALIFORNIA) — As he gears up for a possible presidential bid, California Gov. Gavin Newsom on Friday proposed a national “billionaires’ tax,” — a day after the state wealth tax measure he opposes qualified for the November ballot.
Newsom’s counter proposal calls for a federal minimum tax rate on Americans worth more than $100 million, rather than a state level one-time 5% wealth tax that the governor argues could be dodged by billionaires who could leave the state for another.
Newsom, who said earlier this month that he is “considering running for president,” said the country should return to pre-2017 corporate tax rates and close offshore loopholes that allow multinationals to shift profits and pay less in taxes. He also said inheritance rules need to be rewritten.
“Over the next twenty years, this country will live through the largest intergenerational wealth transfer in human history, with roughly $124 trillion changing hands. If we do not act, that transfer of wealth among the ultra-wealthy will lock in a permanent American aristocracy of inherited wealth,” Newsom wrote in a Substack post announcing the proposal on Friday morning.
The announcement comes a day after California’s own billionaire tax qualified for the November ballot, having collected more than double the signatures needed. The measure, a one-time 5% tax on billionaire wealth introduced by healthcare workers union SEIU-UHW, in response to steep healthcare funding cuts resulting from President Donald Trump’s “Big Beautiful Bill,” has faced opposition from Newsom, California Democratic gubernatorial nominee Xavier Becerra and major lobbying organizations.
“We can’t let a single advocacy organization, however well-intentioned, write the state’s tax code on its own terms,” Newsom wrote, calling out the SEIU-UHW.
The measure has also led to heavy spending from billionaires, who oppose the tax. The nonprofit, Building a Better California, which supports committees promoting two competing ballot initiatives that would nullify the billionaire tax initiative, if passed, has raised more $118 million — and $80 million of that comes from Google co-founder Sergey Brin.
Newsom says that he understands the “anxiety driving the wealth tax proposal in California,” but that he’s voting no on the California proposal, because he argues the measure dedicates almost all of the revenue to just state-funded healthcare services.
SEIU-UHW Vice President Debru Carthan said Thursday that the coalition supporting the tax would not back down.
“The billionaire tax will be on the November ballot,” said Carthan. “And we intend to win.”
About 250 billionaires would be taxed under the California measure, and the state’s nonpartisan Legislative Analyst’s Office says it’s likely that some billionaires would leave the state.
“You may not be able to pick up and move to Texas or Florida to shelter your income from taxation, but I promise you that billionaires can, and do,” Newsom writes. “Wealth is movable, and it shops for the state with the lowest taxes. The fight belongs at the federal level, where this broken system was created in the first place.”
Dan Schnur, a political science professor at UC Berkeley, called Newsom’s tax proposal “savvy political positioning” as it helps him enter the 2028 field without being seen as an opponent to taxing the rich.
“He’s not against taxing billionaires, he just has a different way of doing it,” Schnur said. “He now has an answer for progressive Democrats, whether in California or in early primary states, as to why he didn’t support the ballot measure.”
In Washington, another 2028 contender, California Democratic Rep. Ro Khanna, joined Vermont independent Sen. Bernie Sanders — both of whom supported the California’s initiative — in introducing legislation that would establish an annual 5% wealth tax on billionaires nationwide.
Newsom is also proposing a national public equity fund, giving Americans a stake in economic gains generated by artificial intelligence companies. The fund — aimed at workers left behind by automation — would support universal child care, free higher education, career training and healthcare.
“Part of this fund could provide a real transition for the laid-off factory worker in Ohio or the 25-year-old coder in San Francisco who sent out a thousand resumes and got zero callbacks,” Newsom wrote. “This could include significant severance and portable benefits while we support them through the transition and into new jobs with programs like enhanced employment insurance.”
“As artificial intelligence reshapes the country, every American should own a piece of the future it builds,” Newsom wrote.
Other potential 2028 contenders are also beginning to stake out their positions on AI. Democratic Rep. Alexandria Ocasio-Cortez has introduced legislation proposing a nationwide moratorium on AI data center construction, which would create a temporary prohibition on the construction and expansion of data centers until Congress passes legislation to address the economic, environmental and safety impacts of artificial intelligence.
ABC News’ Will Lennon contributed to this report.
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(WASHINGTON) — Republican Rep. Mike Turner defended the U.S. war with Iran on Sunday and said that he doesn’t believe an American ground force would be required to restore freedom of navigation through the Strait of Hormuz.
“I don’t think U.S. ground troops are going to be necessary in any direct conflict,” Turner told ABC News’ “This Week” anchor George Stephanopoulos after being pressed on whether troops on the ground would be needed to reopen the strait.
“The straits are going to be open,” Turner told Stephanopoulos, but said that the U.S. cannot allow Iran to continue developing missile technology or nuclear weapons that could threaten the American homeland and Europe.
“You have to be able to address this … great sponsor of terrorism, this … global power ambition that Iran has,” he said.
Turner’s comments come as President Donald Trump has repeatedly indicated that the Strait of Hormuz is not the U.S.’s problem.
“The United States imports almost no oil through the Hormuz Strait and won’t be taking any in the future. We don’t need it. We haven’t needed it and we don’t need it,” Trump said Wednesday in a prime-time address to the nation, adding that it was the responsibility of other countries to secure the strait.
“We will be helpful, but they should take the lead in protecting the oil that they so desperately depend on,” he said.
Turner said that despite the impact of the war on global oil markets, the consequences of inaction from the U.S. against Iran would have been greater.
“Certainly, you know, Iran is going to have some things that they’re going to be able to do during the conflict,” Turner said. “But if you don’t undertake the conflict, if you just step back and watch, as the Obama administration was going to do while Iran became a nuclear power and they became North Korea, we wouldn’t be looking at the Strait of Hormuz,” he added, claiming that if Iran had developed nuclear weapons the world would be “held hostage by a terrorist state.”
“They still are being significantly diminished,” Turner said, “and their ability to be able to be marching toward a nuclear state is being eliminated.”
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(WASHINGTON) — Former President Barack Obama, in a video shared exclusively with ABC News, called on Virginians to vote in favor of a redistricting measure that could give Democrats a boost in the 2026 midterms if it passes.
“By voting yes, you can push back against the Republicans trying to give themselves an unfair advantage in the midterms,” Obama said in the video shared with ABC News. “By voting yes, you can take a temporary step to level the playing field. And we’re counting on you.”
Over a million Virginians have voted early already, according to the Virginia Public Access Project, in an April 21 statewide referendum that will decide if the Democratic-controlled legislature should be allowed to redraw the state’s congressional map.
That would allow the legislature to implement a map it already advanced that would reconfigure four congressional seats to favor Democrats, which could be decisive in the midterm elections for the U.S. House of Representatives given Republicans’ current slim majority.
Democrats — including Obama, who previously starred in an advertisement for the “yes” side — have argued that it’s a necessary counterweight to mid-decade redistricting in 2025 that redrew nine seats to favor Republicans.
Republicans and other opponents of the redistricting gambit, which is also still facing a court challenge even as the election was allowed to proceed, have slammed the move as unfair to a large swath of Virginia voters. President Donald Trump received 46% of the vote in Virginia in the 2024 election.
“Virginia is a very purple state, and there’s a wide variety of voices in Virginia,” U.S. Rep. Jen Kiggans, a Republican whose district is redrawn by the proposed new map, told ABC News. “And for one political party to come in and assume that it’s their way or the highway, and to force that down Virginians’ throats — this will come back to bite them.”
The “Yes” side has fundraised and spent millions more on advertisements than the “No” side, according to campaign finance filings and an analysis by AdImpact. It’s also been bolstered by celeb power from figures such as Kerry Washington, John Legend and Pusha T.
Yet polling has still shown a close race, despite the seeming momentum behind the “Yes” efforts. A Washington Post-Schar School poll conducted in late March, after early voting had begun in the state, found that 52% of likely voters in the referendum supported the move, while 47% were opposed — a result just outside the poll’s margin of error.
Why does it appear so close? J. Miles Coleman, a political expert and analyst at the University of Virginia Center for Politics, told ABC News that could be in part because for Democrats, the stakes may not seem as high as they are for Republicans.
“For Democrats, it would be nice to have these four extra seats out of Virginia if this map gets passed,” he said. “But I just think probably something driving enthusiasm on the Republican side is that, from their point of view, this vote probably seems more existential … they lost their statewide seats last year in a drubbing. They could very well stand to lose a lot of their federal representation.”
But Obama, in the video shared with ABC News, framed the stakes as having national importance.
“By voting yes, you have the chance to do something important — not just for the Commonwealth, but for our entire country,” Obama said in the video.
(The video also serves as a way for Obama to reaffirm his support for the ballot measure, after allies of his harshly criticized mailers that used old quotes from Obama about redistricting to portray him as against the initiative.)
Some Democrats are not onboard.
Outside of an early polling site in Virginia on Thursday, Geoff Warrington, who works in tech and identified himself as a Democrat, told ABC News he had chosen to vote no because he believes it is “relatively unfair to essentially have redistricting temporarily to reallocate seats to sway an election.”
But for some Democratic “yes” voters, the referendum is a way for Democrats to be able to strike back while being locked out of power in the White House and Congress.
“I mean, the Republicans have been playing dirty, so I think the Democrats are good to play dirty,” Adan Hernandez, an engineer, told ABC News at a separate early voting site in Virginia on Thursday.
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