Political strategist Dick Morris said on Newsmax's "Saturday Report" that progressive efforts in California to target billionaires with new taxes could seriously undermine Gov. Gavin Newsom's national political ambitions by accelerating an exodus of wealth from the state.
Morris' comments came as reports emerged that Google co-founders Larry Page and Sergey Brin have moved their assets out of California amid renewed calls by the Service Employees International Union to impose a tax on billionaires equal to 5% of their assets.
The proposal, which would require voter approval in November if it qualifies for the ballot, would apply retroactively to Jan. 1.
Morris argued the political fallout would be severe regardless of whether the measure ultimately passes.
"The story is not going to be California raising money," Morris said. "The story is going to be everybody leaving."
He said Newsom, who is widely viewed as a potential future presidential candidate, would struggle to distance himself from the policy climate surrounding the proposal, even though the governor has not endorsed the tax.
"I think this will be a millstone around his neck that will drag him down," Morris said, adding that wealthy individuals and businesses are increasingly relocating to red states, compounding California's economic challenges.
Morris compared the billionaire tax proposal to past tax revolts in California, arguing it could spark a similar backlash nationwide. He also said the issue fits into a broader narrative of fiscal mismanagement in Democratic-led states, including allegations of waste, theft and fraud.
According to Morris, while progressive leaders may seek to shift attention to cultural or social flashpoints, economic concerns tied to taxes and outmigration are likely to resonate more with voters and pose a long-term political risk for Newsom.
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