Steve Hilton unveils California governor plan with tax cuts and spending cuts

Republican gubernatorial candidate Steve Hilton announced a sweeping economic plan to reshape California, proposing to eliminate state income tax for residents earning up to $150,000 and implement an 8% flat rate on income above that threshold.

Hilton told The California Post that the state can fund the tax cuts through spending reductions, including permanently shelving California's $126 billion high-speed rail project. He characterized the state's fiscal situation as a spending problem rather than a revenue problem.

"California doesn't have a revenue problem. It has a waste problem," Hilton said. "The political establishment's answer is always to take more from taxpayers. My answer is to stop wasting what taxpayers are already paying."

The state's current budget exceeds $350 billion, nearly double the amount from a decade ago, according to Hilton's remarks. He also proposed using artificial intelligence to identify and eliminate waste from government operations and modernize state functions.

Beyond tax policy, Hilton announced a separate economic initiative focused on construction and development. In a speech prepared for the Commonwealth Club in San Francisco, he called for suspending some of California's most stringent regulations for a decade to accelerate building across the state.

"For 10 years, California will have one overriding priority: build again," Hilton said.

If elected, Hilton has pledged to investigate Governor Gavin Newsom and Attorney General Rob Bonta over what he claims represents $425 billion in fraud. His planned first executive order would establish the California Taxpayer Fraud Strike Force, a statewide initiative with a $100 million appropriation to prioritize investigations into homelessness spending and other areas.

Hilton advanced to a November runoff against Democrat Xavier Becerra after securing nearly 25% of the vote in the June primary election. He has received endorsement from President Donald Trump, who offered his "complete and total endorsement" in June, stating he had "known and respected" Hilton for many years.

In July, Hilton released campaign advertising targeting voters across the political spectrum, with a full-page advertisement in the San Francisco Chronicle and Los Angeles Times headlined "Can you be anti-Trump but still vote for me?" The ad presented a checklist of cost-of-living issues affecting California residents, including utility bills, gas prices, homelessness, and taxes.

Hilton cited polling showing a majority of Californians believe the state is on the wrong track. He characterized his Democratic opponent as "the ultimate career politician" and referenced Becerra's 36 years in politics, citing what he described as California's highest poverty rate, highest unemployment rate, and highest cost of living in America under current leadership.