Fresh off of proposing a national economic 'reset' and wealth tax, outgoing California Governor Gavin Newsom is laying out more of his 2028 campaign platform, and it's going to be rich on taxing the wealthy. Newsom is now proposing a ban on the 'ban, borrow, die' strategy to target the 'uber-rich.'
Gavin Newsom wants to ban the "buy, borrow, die" tax strategy used by the uber-rich. Here's what it is. https://t.co/UEOEvchsPM
— CBS News (@CBSNews) July 1, 2026
A tax strategy known informally as "buy, borrow, die" is the latest flashpoint in the debate over wealth inequality after California Gov. Gavin Newsom last week called on lawmakers to eliminate what he describes as a loophole for the ultra-rich.
The strategy gets its name from what boils down to a three-step approach to lowering taxes. First, wealthy investors buy appreciating assets like stocks, real estate or art. Next, they use the assets as collateral to borrow money to fund their lifestyles, thereby avoiding any sales that would trigger income taxes. Finally, when the owner dies, those assets are passed on to heirs on a "stepped-up tax basis."
Because loan proceeds aren't considered taxable income, a borrower can use the debt without triggering capital gains taxes.
Death provides another tax benefit — known as "step-up in tax basis" — because heirs generally inherit those assets at their market value at the time of the owner's death. That wipes out capital gains taxes on any increase in the value of the assets over the owner's lifetime.
Not only has Newsom driven the wealthy out of California, but he also wants to drive them out of America. Who will the Democrats tax when he does that?
That's right: the rest of us.
FK corrupted, evil NewSCUM.
— Barbie D H (@barbiesway) July 1, 2026
WHERE'S our MONEY?????
Homelessness problem Over $24 Billion+ unaccounted, unfound data of how the over
$24 BILLION $$ allocated for the homeless was spent.
AND NOW they want more billion$$$$, THIEVES & LIARShttps://t.co/CEYk8x1rSr
BILLION$+ High…
He's so corrupt.
This man just approved a tax on health insurance premiums that will cost Californians $100 per year. pic.twitter.com/Ai7L6l0i8r
— Yumbaldeh (@Yumbaldeh1) July 2, 2026
He also put a 100 percent tax, which is unconstitutional, on payouts from President Trump's weaponization fund.
🔴 Newsom calls for federal ban on 'buy, borrow, die' tax strategy for ultra-rich
— NewsTongue (@NewsTongueX) July 1, 2026
California Gov. Gavin Newsom last week urged Congress to eliminate the "buy, borrow, die" loophole, in which wealthy investors buy appreciating assets, borrow against them to fund lifestyles… pic.twitter.com/a1qwaeGykc
"California Gov. Gavin Newsom last week urged Congress to eliminate the 'buy, borrow, die' loophole, in which wealthy investors buy appreciating assets, borrow against them to fund lifestyles without triggering capital gains taxes, then pass assets to heirs at stepped-up basis, erasing tax liability on lifetime gains. Newsom wrote: 'The wealthy have their own private tax code full of loopholes and exemptions that most people have never heard of, and they're counting on politicians in Washington to maintain it and keep quiet'," the post reads.
GAVIN NEWSOM said that he will do everything that he can to get rid of the WEALTHY PEOPLE of CALIFORNIA
— Dennis (@svancarekDennis) July 1, 2026
And in America. They'll leave.
Is he going to tax loans? His dyslexia has really f***ed him up.
— Neko atsume Player (@AtsumePlayer) July 1, 2026
Anyone can take out a margin loan with their broker.
This isn't his dyslexia. He knows what he's saying, and he'll absolutely tax loans from others.
buy, borrow and die is classic move and Gavin dips**t they are leaving in masses, you will just speed it up. It's not the wealthy that are the problem here it's you buddy.
— Mech's World (@MechsWorld) July 1, 2026
They hate the wealthy, unless it's them.
Then we would need to ban all equity loans…including home equity. Newsom is a scoundrel who leads a disaster of a state.
— Mike Moran (@Mike1Moran) July 1, 2026
He is a scoundrel.
It seems Newsom’s entire strategy will the run on ENVY of the rich. Isn’t that something? The plastic governor with a silver spoon in his mouth, married to a Hollywood actress, heir to the Pelosi political dynasty. He’s the closest thing California has to royalty. At least Trump…
— Mountain Man (@MountainMan280) July 1, 2026
With socialists taking over the Democratic Party, the war on the rich is just getting started. And remember, someone is always richer than someone else. The Democrats will come to after you and your income after they tax the wealthy out of oblivion.
Voters need to remember that in November. Democrats will tax everything they can.
Editor’s Note: The 2026 Midterms will determine the fate of President Trump’s America First agenda. Republicans must maintain control of both chambers of Congress.
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