Experts say Newsom’s tax returns don’t show full picture of his wealth | CA Politics 360

California Gov. Gavin Newsom and First Partner Jennifer Siebel Newsom released their tax returns this week, covering the years 2021 to 2024, as federal investigations reportedly focus on their nonprofits.

The 2025 tax returns were unavailable because the Newsoms filed an extension for that year. Journalists were allowed to review the documents but were restricted to recording information with pen and paper, without photos or video.

The tax returns show that the Newsoms remain multimillionaires, primarily due to investments and Newsom’s wine and hospitality business, which are held in blind trusts. Nonprofit money and wages represent a small fraction of their income. However, their overall income has decreased by approximately 18% since Newsom became governor in 2019.

Chris Micheli, a longtime lobbyist and adjunct professor at McGeorge School of Law, explained the legal context for the release.

“The law only applies to candidates for governor. And so the first time it was in effect was in 2022. So when the governor ran for reelection, he and his competitors had to release that. You may recall, as a result of President Trump refusing to release his returns, California enacted a law that said candidates for governor and president have to release five years of returns. Unfortunately, the court said the state can’t impose that on presidential candidates, but it remains in effect for gubernatorial candidates,” Micheli said.

Democratic strategist Steven Maviglio suggested political motives behind the release, saying, “One word, politics. I mean, it’s very clear he’s preparing to run for president. He wants to get this out of the way, reduce the damage control. All his competitors have already released their returns. Kamala Harris, Pete Buttigieg, Josh Shapiro, all these people have had their numbers out there. So I think he just wants to get this out of the way and move on, especially since wealth is a big issue among Democrats these days.”

Republican strategist Tim Rosales noted that the Newsoms’ tax returns do not provide a complete picture of their wealth.

“Absolutely not. I’ve worked with candidates who are very, very wealthy. And they release their tax returns. And I’ve had reporters sit there and say, well, where’s all the money? What do they pay taxes on? Well, you know, no surprise to the general public out there. Wealthy people have their money all over the place, and it’s not necessarily reflected all the time in income taxes. And there’s other ways in which to get that information out there or to ask about it, but it just the full picture is not always painted by what’s on your tax return,” Rosales said.

Micheli echoed this sentiment, stating, “No, because remember, just by its name, an income tax return shows income. Many wealthy individuals, their wealth is in assets. Their holdings, whether it’s stock, real estate, property, etc. So this is just the income that they’re receiving. But keep in mind that the governor, just like all local and state elected and appointed officials every year, have to file what we call a form 700, a statement of economic interests that describes in greater detail those assets, not just their income. So there is information available on the assets of the governor and other office holders.”

The release of the tax returns comes as federal investigations reportedly target nonprofits run by Siebel Newsom, including Girls Club Entertainment and the Representation Project.

Maviglio described behests—gifts from corporations to charities on behalf of a candidate—as a potential issue.

“Has been the explosive issue of behest is a gift by a corporation, typically to a charity on behalf of a candidate, sort of a wink and a nod. If you give these people some money, you know, would be very nice. So, you know, this has been a problem in the Legislature. And I think in the sense of the governor, I think people will make hay of it,” he said.

The tax returns do not show that the Newsoms are enriching themselves through the nonprofits.

However, the organizations are reportedly at the center of one of the federal investigations. Maviglio noted, “I think in particular, we haven’t seen our first partner or first lady get so involved in a lot of policy, as we have with Jennifer Siebel Newsom. And I think she’s become a little bit of a problem for him because she’s created a lot of headlines about money and behests from corporations. This is something we haven’t typically seen. Even Maria Shriver didn’t have that kind of issue. So, I mean, it’s new, and I think voters are trying to figure out what those connections are. And if there’s any investigation that leads to anything that’s murky. Again, problematic.”

Rosales commented on the financial losses of the Newsoms’ nonprofits, saying, “Certainly, it’s unusual to see nonprofits losing money year over year. And that’s what we’re seeing. That’s what we’ve seen with the Newsoms’ interest in those nonprofits. I think that’s probably kind of sparking the interest of FBI and other, and IRS and other officials looking at a nonprofit that is continuously losing money is where what are they expending money on? Where is that money going? Are they raising new money? All of those questions, I think, you know, probably need to be answered and will be answered in due time. But from a Republican standpoint, I think that, you know, again, kind of goes back to all of these issues that seem to follow the Newsoms wherever they go. I mean, from the time that the governor was mayor of San Francisco to where he is now to now running for president, it’s just a train of scandal issues backed up by a complete failure at on the policy perspective, which I think Republicans are kind of chomping at the bit, hoping that the Democrats, you know, nationally nominate Gavin Newsom because I think they’re going to have a field day when it comes to opposition research. And then also looking at, you know, different policies that they can absolutely drive trucks through.”

Micheli suggested that Newsom views the investigations as politically motivated, citing recent admissions by the Trump administration.

“I think the governor’s perspective that these are politically motivated, I think that there’s some credence in that just in the past week, we’ve had the Trump administration admit in court, for example, that the removal of green energy funds were entirely politically motivated and targeting blue states. And earlier this week, the Trump administration admitted that over a year ago last August at the governor’s rally, that those ICE raids were, in fact, politically motivated. It gives him some basis to obviously view these as politically motivated by the Trump administration,” Micheli said.

Newsom has hired high-profile Washington, D.C., criminal defense attorney Abby Lowell, signaling that he is taking the investigations seriously.

“Undoubtedly. And he should, of course. The federal government and the Department of Justice in a weaponized administration or a non-weaponized administration, has a lot of tools at their disposal. And any criminal investigation should, of course, be taken seriously. But clearly he’s going to have to come back. What many view as a weaponized federal Department of Justice,” Micheli said.

Maviglio added, “Yeah, I mean, he’s the best, sort of damage control and law. So that’s why they hire him. And I think it’s important to note that, you know, Newsom hasn’t been found guilty of anything. These are just investigations. And compared to the grift that we’re seeing from Trump and all his problems, this is nothing.”

Rosales concluded, “Well, I think, you know, time will tell, what the future holds for Governor Newsom and his wife in terms of these investigations that will play out. And I think Steve is exactly right. He hasn’t been charged or accused or found guilty, or he’s been accused but not found guilty of anything. I think that, you know, in terms of the national conversation, it continues to do what Governor Newsom wants, which is at this point in the campaign, keep his name at the top of the list out there, talked about not just in California, but nationally. And certainly I think releasing income taxes and those types of things, furthers that goal of his to keep himself out there in the news, in whatever light, that may be. He may be out there.”

KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.