Bay Area Council Applauds Gov. Newsom for Rejecting Wealth Tax as He Unveils 2024-25 Budget Proposal

The Bay Area Council today (Jan. 10) issued the following statement in response to Gov. Newsom’s proposed 2024-25 budget, which calls for $19 billion less in spending than last year while addressing a budget deficit that he estimates is $38 billion.

“After years of budget surpluses and programmatic spending increases, the time has come for California to make a fiscal course correction,” said Jim Wunderman, President and CEO of the Bay Area Council. “Gov. Newsom’s proposed budget offers a solid framework that invests in key priorities like infrastructure, homelessness and crime and public safety while offering a balanced approach for closing the deficit using a combination of cuts, borrowing, belt-tightening and other fiscal measures. It doesn’t surprise that some groups are already making reckless, knee-jerk calls to raise taxes, and we loudly applaud Gov. Newsom’s unequivocal opposition to any new wealth taxes. Any addition to California’s highly progressive wealth tax, already by far the nation’s highest at 13.3%, is a prescription for serious economic and fiscal decline.

“Gov. Newsom is right that this budget represents an opening salvo and we look forward to working with him, his administration and the Legislature over the coming months to develop a budget that is fiscally responsible and disciplined, accountable and reflects the vital importance of keeping our economy strong.”