California world’s 4th-biggest economy

Gov. Gavin Newsom boasted that his state has become the world’s fourth-largest economy, following only the U.S., China and Germany in global rankings.

The state’s nominal gross domestic product reached $4.1 trillion last year, edging past Japan’s $4.02 trillion, Newsom said in a statement, citing newly released International Monetary Fund country-level data and preliminary state data from the U.S. Bureau of Economic Analysis.

“California isn’t just keeping pace with the world — we’re setting the pace,” Newsom said. “Our economy is thriving because we invest in people, prioritize sustainability and believe in the power of innovation.”

The Democratic governor is leveraging the state’s economic heft to challenge President Donald Trump’s trade and other policies, portraying California as a global economic force positioned to resist federal actions he says could harm key industries.

California’s more than $4 trillion economy accounts for about 14% of U.S. GDP, with the real estate, finance and technology sectors among the top contributors, according to the Public Policy Institute of California. After years of declines, California’s population grew by roughly 250,000 people last year, driven by a rebound in births and gains from international migration — though the total remains below pre-pandemic levels.

Newsom has argued that the state has the most to lose from tariffs because of the size of its industries. Last week he sued the Trump administration over his tariff hikes, arguing that the Republican president lacks the authority to implement it without congressional approval. He vowed to negotiate with foreign leaders in an effort to spare California businesses from retaliatory tariffs.

Trump not a fan of millionaire tax

President Donald Trump said that imposing a higher tax rate on millionaires would spur the country’s richest to leave the U.S., downplaying an idea that is under discussion in some Republican circles as a way to pay for an economic package.

“I think it would be very disruptive because the millionaires would leave the country,” Trump told reporters in the Oval Office on Wednesday. “Other countries that have done it have lost a lot of people. They lose their wealthy people. That will be bad because the wealthy people pay the tax.”

Trump’s remarks are likely to pour cold water on discussions about creating a new 40% tax bracket for people earning $1 million or more. Some members of the party in both the House and Senate have said they’re open to raising levies on top earners to help pay for other pieces of Trump’s agenda, which include proposals to end taxes on tips and overtime.

House Speaker Mike Johnson earlier Wednesday said he does not “expect” a Republican tax bill to call for raising income tax rates on millionaires.

Intel looking to cut over 20% of staff

Intel Corp. is poised to announce plans this week to cut more than 20% of its staff, aiming to eliminate bureaucracy at the struggling chipmaker, according to a person with knowledge of the matter.

The move is part of a bid to streamline management and rebuild an engineering-driven culture, the person said, asking not to be identified because the plans are private. It would be the first major restructuring under new Chief Executive Officer Lip-Bu Tan, who took the helm last month.

The cutbacks follow an effort last year to slash about 15,000 jobs in a round of layoffs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year.

A representative for Intel declined to comment.

Compiled from Bloomberg reports.