Steve Hilton says California can fund a major tax overhaul by cutting spending, including shelving the $126 billion high-speed rail project.
Steve Hilton’s California tax-cut plan took its first public shape this week, with the Republican governor candidate saying the state can finance sweeping relief by cutting government spending. Hilton said his proposal would eliminate state income tax for Californians earning up to $150,000, then apply an 8% flat rate above that level.
In an interview with The California Post, Hilton said the state could cover the cost of those changes by trimming major programs and bureaucratic expenses. At the top of his list was the long-delayed $126 billion high-speed rail project, which he said should be shelved permanently. He also said he would pull funding from what he called the “homeless industrial complex,” referring to the billions the state has directed to homeless nonprofits in response to California’s severe homelessness crisis.
Hilton’s plan also takes aim at groups and spending he says misuse public money for political activity. He singled out CHIRLA, the Coalition for Humane Immigrant Rights, which he said received nearly $34 million in government grants and was involved in alleged ballot harvesting. He also said he would cancel what he described as “vanity projects,” including expensive portraits and nonprofit projects tied to Newsom’s wife that have drawn federal scrutiny.
“Steve Hilton says California can fund a major tax overhaul by cutting spending, including shelving the $126 billion high-speed rail project.”
Along with those cuts, Hilton said he would order a 5% efficiency saving across all state departments and reduce state government payroll by 10% in what he called “Sacramento bureaucracy.” The proposal is the first stage of a broader overhaul he says would reshape California’s finances and make the state more affordable for working families.
The plan lands in a state where taxes, homelessness, and public spending have become defining political issues. California’s high cost of living has pushed tax relief to the center of the debate, while the state’s vast bureaucracy and expensive infrastructure projects remain frequent targets for conservatives. Hilton is trying to tie those frustrations together into one message: cut government first, then use the savings to lower taxes.
For voters, the core question is whether California can actually make room for large tax cuts without gutting services people rely on every day. Hilton is betting that suspending marquee projects, trimming departments, and ending controversial grant spending will free up enough money to deliver on his promise. The fight over his California tax-cut plan now becomes a test of whether voters want smaller government and lower taxes, or a different path for the state’s budget. Why it matters: Californians are being asked to choose between a bigger state and a cheaper one.
Frequently asked questions
What is Steve Hilton proposing on taxes?
He wants to remove state income tax for Californians earning up to $150,000 and apply an 8% flat rate above that threshold.
How does Hilton say California would pay for it?
He says the state can save money by cutting spending, including shelving the $126 billion High-Speed Rail project and reducing government headcount.
Which programs does Hilton want to target first?
He specifically pointed to homeless nonprofit funding, CHIRLA grants, vanity projects, and a 10% reduction in Sacramento bureaucracy.
Why does this plan matter politically?
It puts taxes, Homelessness, and government spending at the center of California’s governor’s race and tests how far voters want cuts to go.
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