Gavin Newsom’s High-Tax Revenue Woes

As he moves right on culture, he still has a tax-and-welfare problem

WSJ editorial. Excerpts:

"highly progressive tax system, which imposes a top rate of 13.3% on taxpayers making more than $1 million (14.5% on their wage income). The top 1% of earners pay half of all state income tax."

"Stock prices of California’s largest tech companies, notably Nvidia (42%), Meta (36%) and Apple (12%), are higher in the last year."

"Tech companies and other businesses are shedding jobs in California and moving them to lower-tax states."

"state’s economy “has been lackluster, with elevated unemployment, a stagnant job market outside of government and healthcare, and sluggish consumer spending.”"

"California lost jobs in nearly every industry besides government, healthcare and social assistance between January 2024 and January 2025."

"The state’s expansion of Medicaid benefits to illegal immigrants will cost $2.7 billion more than the $6.4 billion forecast last year. It turns out that when people get free healthcare, they use more of it."