Rep. Young Kim, R-Calif., on Tuesday sharply criticized California Gov. Gavin Newsom as the "king of fraud," warning that new tax proposals and fiscal policies are driving businesses, jobs, and investment out of the state.
Appearing on Newsmax's "National Report," Kim urged opposition to a proposed 5% billionaire tax, calling it "crazy." He said, "the more we talk about how crazy this 5% billionaire tax is, the more we can convince people not to sign on to that ballot initiative so that it doesn't qualify."
She cautioned against the proposal's potential retroactive application, noting legal concerns: "The legal pushback is, Wait a second, you can't do that," especially if residents "decide that they're going to move right away."
Kim said California is already experiencing an economic exodus, pointing to "Tesla, Uber founders, venture capitalists that are already fleeing the state because of the high taxes that we already have," along with "tech companies that are also moving out of state."
As a result, she said, "we are losing many of our high-paying jobs, capital investments," with opportunities shifting "to Florida and Texas."
Framing the issue as fiscal mismanagement, Kim argued, "we have a spending shopping spree problem. So adding more to the credit card and increasing the credit card limit is not going to solve anything."
She added that when entrepreneurs leave, "it's not just the wealth that they're taking, it's the capital, the high paying jobs."
"California used to be the 'Golden State' of opportunities and innovation," she said, but "it's now becoming the capital of exit plan."
While Newsom himself has expressed concerns about the tax's long-term effects, Kim dismissed his broader leadership. She said, "We don't need costly mandates or increase in the billionaire tax," particularly targeting "hard working entrepreneurs who are creating jobs."
She then escalated her criticism. "Gov. Newsom is probably the king of fraud, and he's using California as his kingdom," she said.
Kim alleged financial impropriety tied to the governor's family, claiming that "his wife has paid herself about $3.7 million from the organization that she founded," and that Newsom "has personally funneled almost $4 million ... to her organization."
"If this is not the fraud at its highest scale, I don't know what it is," Kim said.
She also highlighted federal efforts to combat fraud, saying she was "so glad that President Trump has officially established the Anti Fraud Task Force," and promoted her own "No More Scams Act" to codify such efforts "so that we can put fraud to bed once and for all."
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