Newsom says California wealth tax 'really damaging' as billionaires move money, businesses out of state

California Gov. Gavin Newsom acknowledged that the state’s proposed wealth tax is "bad economics."

Newsom said he feels vindicated in opposing the proposed wealth tax after reports showed some of California’s wealthiest residents moving money and businesses out of the state, warning the measure would damage the economy and drive away investment.

"This is my fear," Newsom said in a Politico interview on Monday. "It’s just what I warned against. It’s happening."

"The evidence is in.