NBC Bay Area-
Gov. Gavin Newsom forcefully pushed back Friday on criticisms that California is becoming unfriendly for business, pointing to “all the new billionaires” created by initial public offerings and noting that its richest people are “doing pretty damn well.”
The Democratic governor’s comments came as he outlined his proposed $227 billion budget for the upcoming fiscal year, which featured a $15 billion windfall despite the recession caused by the pandemic. California’s budget relies heavily on personal income tax, particularly from the richest people, and the budget estimates demonstrate that California’s richest continue to prosper while lower-income people are hit hardest from job losses.
Newsom’s extended riff about the state’s business climate came in response to questions about people moving out of California, including billionaires Elon Musk, the head of electric car company Tesla, and Larry Ellison, the chief executive officer of software company Oracle. Musk recently moved to Texas, which has no income tax, though Tesla is still headquartered in California. Ellison moved to Hawaii and moved his company headquarters to Texas.