Reform California with Carl DeMaio · Carl DeMaio

More Bad Economic News for Gavin Newsom!

March 25, 2026·12 min·1 clip

California lost $11.9 billion in tax revenue as high-earners fled under Gavin Newsom's policies.

This episode analyzes recent economic data that host Carl DeMaio argues shows California's decline under Governor Gavin Newsom. DeMaio, Chairman of Reform California and a state legislator, presents this as evidence for his political advocacy. He frames the discussion as countering a narrative from the Democratic supermajority and liberal media. DeMaio cites 2023 IRS migration data showing a net transfer of $37.2 billion in tax revenue to red states from blue states. California specifically lost $11.9 billion in tax revenue, which he links to the state's budget deficit. He claims the top 1% of California taxpayers contribute 38% of state income tax revenue, making their departure impactful. A proposed "billionaire's tax" or savings tax is cited as a recent catalyst for high-net-worth individuals leaving. Inflation data from February shows California's housing costs rising 1.5% versus 1.2% nationally, and transportation costs up 3.9% versus 0.9% nationally. California's February unemployment rate was 5.5%, compared to a 4.4% national average. DeMaio states that in the fourth quarter of 2025, California created nearly 350,000 government jobs but lost 181,000 private sector jobs over two years. He argues this creates an unsustainable "house of cards" for the state budget. The host contends Newsom is managing the state's finances with "shoe string and bubble gum" to survive until a potential presidential run. Reform California is building a "dirt file" for an "Expose Gavin Newsom" campaign to release if he runs for president. This file allegedly includes topics beyond economics, like no-bid contracts and infrastructure. DeMaio predicts this economic record will harm Newsom's presidential prospects and that any Republican would "clean his clock" in 2028. The episode's tone is confrontational and politically charged, directly blaming state leadership. The style is a monologue presentation of selected data points to support a clear political argument. Listeners interested in conservative critiques of California's governance and economic policies would find this episode compelling. Those seeking a neutral, bipartisan analysis of state economic data should skip it.

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