Steve Hilton on California's budget and tax plan

May 21, 2026

Steve Hilton, running for California governor, pitches big tax cuts and accuses Newsom of massive waste — bad news for state spending, good news for taxpayers if it happens.

  • Hilton wants to scrap state income tax for anyone earning under $100,000 and replace the top 13.3% rate with a 7.5% flat tax, costing the state around $65 billion.
  • His pitch: California's budget doubled from $180 billion to $350 billion in under 10 years while homelessness, roads, and services got worse.
  • A Cal DOGE review estimates $425 billion of fraud, waste, and abuse over five years — including a solar program where $928 million of $1 billion went to nonprofits instead of solar panels.
  • California has the country's highest gas tax but some of the worst roads, and building a road costs four times more than in Texas because of union rules, lawsuits, and red tape.
  • Insurance companies are leaving the state partly because of a "tort tax" — litigation costs that add thousands to every policy.

Outlook: Hilton faces Javier Becerra in the general election, so these ideas will be tested against a Democratic establishment defending the current budget.

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