The group behind a proposed 5% wealth tax in California is pushing for a compromise with Governor Gavin Newsom by pitching a 2% levy instead.
The Billionaire Tax Now Coalition sent the California governor an
Newsom, who opposes the tax, has been pressuring the health care union behind the idea to withdraw it ahead of
His office rejected the offer late Thursday.
"The Governor supports making the wealthiest Americans pay their fair share, but this poorly designed state-only measure will defund teachers, schools, clinics and public safety," Newsom spokeswoman Tara Gallegos said in a statement.
"Changing the tax rate doesn't change this measure's fundamental flaws that harm working Californians," she said.
Newsom's efforts to shelve the tax plan have been backed by a growing alliance of opponents that ranges from the California branch of Planned Parenthood and the state's largest teachers' union to billionaires like Peter Thiel and Sergey Brin.
The Billionaire Tax Now coalition argues the 2% levy would offer a two-year bridge for the state's health care funds, offsetting federal funding cuts by the Trump administration.
"Two years gives California time for the next governor to work with stakeholders and the legislature toward a longer-term and more comprehensive solution to the health care crisis manufactured by Trump," the group said in a letter.
Newsom, who is prevented by term limits from running for governor again, will leave California's top job in January and has said he's considering a run for president.
