For Immediate Release, May 14, 2026
Contact: David Kline (916) 893-2614 or [email protected]
California Taxpayers Association President Robert Gutierrez issued the following statement on the $3.6 billion in annual tax increases (growing to $5.1 billion in 2027-28) proposed today by Governor Gavin Newsom:
“Governor Newsom’s tax hikes on California businesses will hurt every industry in the state and cause higher costs for all consumers. The tax increases also will decimate the state’s innovation economy, ending California’s status as a leader in research, development, and the future of the AI economy – effectively putting more engineers, scientific researchers, and tech workers in the unemployment line.
“California’s technology leadership is a major factor in the recent revenue surge the state is enjoying under existing tax rates, but the governor’s destructive tax increases would cause long-term revenue losses by driving research and development to states that are focused on attracting and retaining employers.
“The governor correctly described tech companies as being ‘foundational’ to the state’s economy, but his multibillion-dollar tax increases will erode the foundation. The Legislature should reject the tax hikes and work instead to build upon the foundation by helping all industries thrive in California.”
The May budget revision proposes general fund spending of $246.56 billion, an increase of $18.6 billion from last year’s enacted budget, continuing California’s surge in unstainable spending.