California
Newsom urges a national ‘billionaires’ tax’ while fighting one in California
California Gov. Gavin Newsom, a Democrat who is considering a run for president as he approaches the end of his term, called for a national “billionaires’ tax” on Friday even as he fights another proposal targeting the wealthy in his home state.
Newsom also said the U.S. government should own a stake in artificial intelligence companies. His proposals, outlined in a Substack post, aligns him with the Democratic Party’s populist left, and he argued that urgent changes are needed to prevent the elite concentration of wealth and power from undermining democracy.
“It’s time for an economic reset for America,” Newsom wrote.
The governor announced his agenda a day after an influential health care union in California pledged to go forward with a ballot measure that would impose a one-time 5% tax on the assets of billionaires living in the state as of Jan. 1, 2026.
Newsom opposes that measure, as do many of the liberal interest groups that typically favor higher taxes. They fear it would drive billionaires out of California, eroding the state’s tax base over the long term for a one-time influx of cash. A technology mecca, California has more billionaires than any other state — a few hundred, by some estimates.
“You may not be able to pick up and move to Texas or Florida to shelter your income from taxation, but I promise you that billionaires can, and do,” Newsom wrote. “Wealth is movable, and it shops for the state with the lowest taxes. The fight belongs at the federal level, where this broken system was created in the first place.”
A minimum tax on large net worths
Newsom said the solution is a new national tax policy, rather than a state-by-state system. He proposed a minimum tax on anyone with a net worth above $100 million. He also wants to make it illegal for the wealthy to borrow against their stock portfolios to fund their luxury lifestyles tax free.
Newsom said there should be new rules for inheritance taxes, warning that “the transfer of wealth among the ultra-wealthy will lock in a permanent American aristocracy of inherited wealth.” And he wants to raise corporate tax rates to where they were before President Donald Trump’s first-term tax cut.
READ MORE: Sanders and Newsom clash over proposed tax on California’s billionaires
The need is especially urgent as artificial intelligence threatens to displace workers and further concentrate wealth, he wrote.
“We need to ensure every American owns a stake in the future being built by AI through a national public equity fund that takes a major stake in the new economy,” he wrote. “Simply, as artificial intelligence reshapes the country, every American should own a piece of the future it builds.”
Revenue generated by his proposals could be used to retrain workers, fund universal child care, make college free and increase funding for health care.
‘Money buys influence’
Newsom, who has drawn attention as one of Trump’s most high-profile political antagonists, is getting an early start on laying out a policy framework for his potential White House bid months before the midterm elections, which have typically marked the informal start of overt presidential campaigning.
WATCH: News Wrap: Newsom says Trump ordering DOJ to investigate him and wife
The embrace of a wealth tax by Newsom, a moderate on tax policy despite his liberal reputation, signals a notable shift in the political landscape since Massachusetts Sen. Elizabeth Warren struggled to get traction in her 2020 campaign, which she largely centered around a 2% levy wealth tax.
Newsom portrayed the nation’s tax code as a corrupt system built to help an elite few.
“Money buys influence, and influence rewrites the rules,” he wrote. “Those rewritten rules funnel even more wealth to the few. Under this weight, democracy itself starts to buckle.”
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California
Becerra leads Hilton by wide margin in California governor’s race, new poll finds
A new poll in the race for California Governor shows Democrat Xavier Becerra is leading Republican Steve Hilton by a wide margin — 61% to 36%.
Becerra leads Hilton across several demographics: age, gender, homeownership, income, racial/ethnic groups and across the state’s major regions.
The poll also found 85% of likely voters say that the gubernatorial candidates’ positions on the environment are important — 60% of Democrats call it “very important,” compared to 29% of Republicans.
The poll surveyed 1,578 California adults from June 29 through July 6 and was conducted by the Public Policy Institute of California. The poll was conducted in English and Spanish, and 1,003 of those who were polled were likely voters.
The same poll found that a large majority of Californians do not want new data centers built in their area. Only about a quarter of those surveyed are in favor of the construction of data centers.
The PPIC survey focused on Californians and the environment.
Another key finding was that Californians are most likely to name wildfires as the top environmental issue facing the state today, followed by climate change, government overregulation and water supply. Of those polled, about six in 10 think that the state and local governments are not doing enough to address wildfires.
The California General Election will be held on Nov. 3, 2026.
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California
California DMV orders 11,000 drivers to retake exams due to suspected cheating
LOS ANGELES – A routine internal monitoring sweep by the California Department of Motor Vehicles has flagged thousands of suspicious test results, prompting a massive recall of licensed drivers to testing centers.
The state agency has warned that anyone who fails to comply with the retesting directive will face immediate cancellation of their driving privileges.
What we know:
The California DMV sent letters to about 11,000 licensed drivers last month after identifying suspicious patterns in their written test results.
According to the agency, these irregularities were detected through routine internal monitoring and point to various methods used to circumvent the testing process.
PREVIOUS COVERAGE: 11,000 CA drivers told to retake written test or lose licenses
The DMV has stated that the issue is entirely “test-taker related” and not the result of an internal technical glitch or the involvement of artificial intelligence.
To address the suspected fraud, several cases have already been referred to county district attorneys for criminal prosecution.
What we don’t know:
The DMV has not revealed the specific cheating methods used by the test-takers, nor have they disclosed the exact locations or dates of the flagged tests.
It’s unclear exactly how many of the 11,000 affected drivers have already completed their retests or how many licenses have been canceled so far.
What they’re saying:
A DMV spokesperson emphasized the importance of exam security in an email to City News Service: “The California DMV has identified irregularities in certain driver knowledge test results that may indicate instances of cheating.”
The spokesperson further explained, “Some individuals may have attempted to circumvent the testing process using various cheating methods.”
Addressing the root cause, the spokesperson added, “Nonetheless, these irregularities are test-taker-related and not the result of an internal DMV technical issue, or the involvement of artificial intelligence. Ensuring the integrity of the knowledge testing process is essential to public safety and to confirm that drivers understand California’s rules of the road.”
Regarding the lack of specific details on how the cheating occurred, the department stated, “DMV is not sharing additional information at this time, so as not to reveal investigative methods and protect the integrity of the investigative process.”
Sen. Tony Strickland (R-Huntington Beach), vice chair of the Senate Transportation Committee, recently sent a letter to DMV administrators expressing concerns about the situation.
On Tuesday, Strickland released a statement saying the DMV’s own letter to drivers created “confusion and unnecessary anxiety” among new license holders.
“The DMV is a state agency that serves millions of Californians, and they deserve clear communication along with timely information when something like this happens,” Strickland said. “I have heard from Californians who believe this language suggests the DMV is accusing them of cheating or engaging in misconduct during the examination process. Whether that is the Department’s intent or not, the wording of the notice has created confusion and unnecessary anxiety. In my letter, I requested additional information about what happened and the steps the department is taking to address the issue.”
What’s next:
The DMV will continue to monitor test results internally while working alongside county district attorneys on the active criminal referrals.
Drivers who received the letters must schedule and pass their exams before their individual 30-day deadlines expire to avoid losing their driving privileges.
What you can do:
If you received a letter from the DMV regarding testing irregularities, you must visit a local DMV office as soon as possible to retake your knowledge test.
Be sure to complete and pass the exam within the mandated 30-day window to prevent your driver’s license from being canceled.
The Source: This report is based on official statements and email correspondence provided by the California Department of Motor Vehicles to City News Service.
California
California man who killed estranged wife’s lover while they slept sentenced
A now 33-year-old Northern California man, who was on the run in Mexico for five nearly five years, has been sentenced for the murder of his estranged wife’s boyfriend while the couple was sleeping in her apartment in 2017.
Arturo Hernandez was 25 when he learned that a man named Anthony Freas was in a relationship with his estranged wife. His calls to her after hearing about the situation went unanswered, according to investigators.
On Nov. 19, livid over the relationship, Hernandez went to the Regency Apartments in the 5900 block of Riza Avenue, where his wife lived. He broke into the apartment where the couple was sleeping, entered her bedroom and stabbed Freas multiple times before fleeing the scene, according to a news release from the Sacramento County District Attorney’s Office.
Officers with the Sacramento Police Department responded to the apartment and found Freas suffering from at least one stab wound to the upper body. They began life-saving measures until paramedics arrived and rushed him to a hospital, where he later died.
Authorities launched a manhunt for Hernandez, who was considered armed and dangerous, The Sacramento Bee reported.
It was later learned that he fled to Mexico, though it is unclear where he had been hiding or with whom.
Hernandez evaded law enforcement until July 2023, when he was arrested by Mexican authorities and FBI agents. He was later extradited back to Sacramento to stand trial.
On March 24, a jury found Hernandez guilty of second-degree murder and found true the allegation that he personally used a weapon during the attack.
More than three months later, on July 10, Judge Alyson Lewis sentenced him to 16 years to life in state prison.
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