Hilton Calls Out California Democrats

California Republican gubernatorial nominee Steve Hilton is putting taxes, high living costs, government spending and regulation at the center of his campaign, arguing that years of Democratic control in Sacramento have made the state increasingly difficult for families and businesses to afford.

Hilton outlined his case during an appearance Tuesday on Newsmax’s “The Record With Greta Van Susteren,” where he criticized California’s political leadership and called for a major change in the state’s economic direction.

“One party rule always ends badly, whether it’s from the right or the left,” Hilton said.

He argued that when one political party remains dominant for an extended period, government leaders can become less responsive to voters and resistant to reform.

Hilton said he believes that has happened in California, where Democrats have controlled the governor’s office and Legislature for years.

California’s Cost of Living Takes Center Stage

Affordability has emerged as one of Hilton’s central campaign themes.

He pointed to California’s unemployment rate, housing costs, gasoline prices, taxes and business expenses as examples of the financial pressure confronting residents.

California recorded a 5.1% unemployment rate in August 2026, according to the U.S. Bureau of Labor Statistics. That rate was tied with Connecticut and Oregon for the highest among the 50 states.

Hilton has argued that California should be performing better given its enormous economy, technology sector, natural resources and highly skilled workforce.

“We have every advantage,” Hilton said.

His campaign message is that state policies—not a lack of economic resources—are contributing to California’s affordability challenges.

Hilton Says Californians Are Being Priced Out

Hilton also pointed to the number of residents who have moved away from California in recent years.

He blamed high housing expenses, gasoline prices, taxes and regulatory costs for making it harder for middle-class families to remain in the state.

Population change is influenced by several factors, including domestic migration, international immigration, births and deaths, so migration figures should not be treated as identical to overall population loss.

Still, the broader question of whether California remains affordable for working and middle-class households has become a significant issue in the 2026 governor’s race.

Hilton is attempting to make that question a defining part of his campaign.

Hilton Proposes Major California Income Tax Cut

One of Hilton’s most significant economic proposals is a plan that he says would eliminate California state income taxes on the first $150,000 of income.

He presented the proposal as a way to provide financial relief to working and middle-income Californians.

Hilton has also called for lower government spending, fewer regulations and changes designed to reduce the cost of operating businesses in the state.

His broader argument is that California cannot solve its affordability problems simply by creating additional programs or spending more taxpayer money.

Instead, he says Sacramento must reduce the cost of government itself.

California High-Speed Rail Faces Fresh Criticism

Hilton has identified California’s high-speed rail project as a major target for spending cuts.

He said he would cancel the project and use government savings as part of his effort to finance tax relief.

California’s high-speed rail system has faced years of political debate over its construction schedule, costs and funding.

Hilton portrays the project as an example of government bureaucracy and spending that he believes California can no longer afford.

Supporters of high-speed rail, however, argue that the project represents a long-term investment in transportation infrastructure and could eventually provide an alternative to highway and air travel.

Proposition 40 Becomes Major Tax Debate

Hilton also sharply criticized California Proposition 40, which will appear on the November 3, 2026 ballot.

The proposal would impose a one-time tax of up to 5% on certain taxpayers with more than $1 billion in covered assets. Real estate, pensions and certain retirement accounts generally would be excluded from the calculation.

Under the measure, 90% of the revenue would go toward health care, while the remainder would support food assistance, education-related programs and administration of the tax.

Hilton called the proposal “insane” and argued that imposing another major tax on wealthy residents could encourage more high-income taxpayers to move elsewhere.

That possibility is also acknowledged in the official state fiscal analysis.

California’s Legislative Analyst says Proposition 40 would probably generate tens of billions of dollars in temporary revenue, but behavioral changes by affected taxpayers—including some potentially leaving California—could result in an ongoing reduction of less than $1 billion annually in state income-tax revenue.

Supporters and Opponents Clash Over Proposition 40

Supporters of Proposition 40 say the temporary wealth tax would provide billions of dollars for health care and other public programs.

Opponents argue that the measure could encourage wealthy residents to leave the state, weaken California’s tax base and create additional economic uncertainty.

The official California voter guide describes the choice directly: a “yes” vote would establish the one-time 5% wealth tax on billionaires, while a “no” vote would leave the tax unimplemented.

The measure is expected to keep taxes, government spending and California’s business climate at the center of political debate heading into Election Day.

Hilton Takes Aim at Sacramento Regulation

Hilton, who moved to California in 2012, said his views on state government were shaped partly by his experience working on a housing initiative.

He said that experience exposed him to what he considers an overly complicated regulatory system.

“I realized how broken and corrupt the system is,” Hilton said during the Newsmax interview.

He also criticized the political influence of public-sector and other labor unions, arguing that they have too much influence over policymaking in Sacramento.

Those statements reflect Hilton’s political assessment; California labor organizations and Democratic leaders have long argued that unions play an important role in protecting wages, benefits and workplace standards.

Business Climate Is Another Hilton Campaign Issue

Hilton has also focused heavily on California’s reputation among employers.

He has cited Chief Executive magazine’s annual survey of CEOs and business owners, which has placed California at or near the bottom of its state business rankings.

Such rankings depend on the methodology and opinions of the executives surveyed, but they have become part of a broader political debate over taxes, regulation and the cost of doing business in California.

Hilton argues that reducing regulation and taxation would encourage employers to remain in California and expand operations.

His opponents are likely to emphasize California’s enormous economy, major technology sector and continued strength in industries including entertainment, agriculture, biotechnology and venture capital.

The 2026 Governor’s Race Puts Affordability in the Spotlight

Hilton secured a place in California’s November gubernatorial election after advancing from the June primary.

His campaign is attempting to focus the general-election debate on issues that directly affect household budgets: housing, gasoline, taxes, jobs and the overall cost of living.

Hilton says California needs lower taxes, less regulation and a smaller state bureaucracy.

Democrats and supporters of the state’s existing approach argue that public spending and regulation can provide important benefits involving health care, education, infrastructure, workers and consumers.

For California voters, those competing approaches create a broader policy debate over how the state should address affordability while maintaining public services and economic growth.

With the November 3, 2026 general election approaching, taxes, housing costs, government spending and California’s economic direction are positioned to remain central issues in the governor’s race.