Sanders, Newsom at Odds Over California Billionaire Tax

Vermont senator campaigns for proposed wealth tax that has Silicon Valley up in arms

Published on Feb. 20, 2026

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Bernie Sanders is heading to Los Angeles to campaign for a proposed 'billionaires tax' in California that has sparked an uproar in Silicon Valley and led to divisions among Democrats. The Vermont senator has long railed against the growing wealth gap in the U.S., and the new tax plan aims to target the state's wealthiest residents.

Why it matters

The proposed tax on California's billionaires has pitted Sanders, a progressive icon, against Governor Gavin Newsom, a fellow Democrat. The debate highlights the growing divide within the party over how to address income inequality and the political power of the ultra-wealthy.

The details

Sanders plans to hold a rally in Los Angeles to drum up support for the 'California Fair Share Tax,' which would impose a 1% annual tax on individuals with a net worth of over $50 million. The tax is estimated to raise over $22 billion per year, which would go towards funding education, healthcare, and affordable housing programs. However, the proposal has faced fierce opposition from Silicon Valley billionaires and business leaders who argue it will drive the wealthy out of the state.

  • Sanders is scheduled to hold a rally in Los Angeles on February 25, 2026 to campaign for the proposed 'billionaires tax'.
  • The California Fair Share Tax bill was introduced in the state legislature in January 2026.

The players

Bernie Sanders

A U.S. Senator from Vermont and a leading progressive voice who has long advocated for higher taxes on the wealthy.

Gavin Newsom

The Democratic Governor of California who has expressed concerns about the proposed 'billionaires tax' and its potential to drive the wealthy out of the state.

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What they’re saying

“We must make the wealthiest people in California pay their fair share to fund critical services and programs that benefit all Californians.”

— Bernie Sanders, U.S. Senator (Los Angeles Times)

“While I share Senator Sanders' concerns about inequality, I worry this tax could have unintended consequences that hurt California's economy and ability to fund important priorities.”

— Gavin Newsom, Governor of California (San Francisco Chronicle)

What’s next

The California Fair Share Tax bill will be debated in the state legislature in the coming months, with a vote expected by the summer of 2026.

The takeaway

The clash between Sanders and Newsom over the 'billionaires tax' highlights the broader tensions within the Democratic Party over how best to address wealth inequality and the political power of the ultra-wealthy.