Episode summary
CA Governor Candidate Steve Hilton on Why California is Destroying Itself & How a Republican Can Win
All-In Podcast
· · 1 hr 9 min · Hosts: David Sacks, Jason Calacanis, Chamath Palihapitiya, David Friedberg · Guests: Steve Hilton
Summary
Steve Hilton argues that California’s core problems are self-inflicted: a tax system that punishes work, regulations that make housing and energy far more expensive, and public spending that he says is riddled with waste and fraud. He frames his campaign as a pro-worker, pro-growth bid to reverse what he sees as California’s drift toward the stagnant, overregulated Britain of the 1970s.
His signature tax proposal is to eliminate state income tax on the first $100,000 of income and replace California’s graduated rates with a 7.5% flat tax above that level. He says the plan would require major spending cuts, but argues the state can get back to roughly its pre-pandemic budget while still preserving essential services. He also says his team has identified roughly $425 billion in waste over five years, or about $80 billion a year.
On housing, Hilton says California’s mix of CEQA litigation, union leverage, and climate rules has made homes two to three times more expensive to build than in neighboring states. He says gas prices and school outcomes are similarly distorted by bad incentives: California imports most of its oil, spends nearly the most per student, and still posts weak reading and math results. On crime and homelessness, he argues the state already has enough laws, but lacks enforcement, and says he would expand prison capacity, restore “rehab or jail,” and force local governments to clear encampments.
Key takeaways
- Hilton’s core tax pitch is zero state income tax below $100,000 and a 7.5% flat rate above that, funded by major spending cuts.
- He claims California can cut roughly $60 billion and still return to around its pre-pandemic budget level.
- His team says it has found about $425 billion in waste over five years, or roughly $80 billion annually.
- Hilton says CEQA litigation, union rules, and climate mandates make California housing two to three times more expensive to build than in neighboring states.
- He argues California’s high gas prices are driven more by regulation and imports than by taxes, and that the state now imports nearly 80% of the oil it uses.
- On crime and homelessness, Hilton wants more prison capacity, stricter enforcement, and sobriety- or treatment-based requirements for state homeless services.
Notable quotes
“the cost of that in total is about an 18.5% reduction in revenue, which takes us back it takes us down about 60 billion”
“we've now published four separate fraud reports out of Cal Doge”
How the episode opens
All right, everybody. Welcome back to the All-In Interview Show. We're very lucky today to have a candidate for the governor of California who is extremely unique in a number of ways. First of all, he's a Republican. And second, he's a Brit. Welcome to the program, Steve Hilton. You've decided to increase the degree of difficulty in two ways, but you're polling fantastic. You've got five or six people in the polls. So,
He's leading the field. — You're uh leading the field. Obviously, it's going to get narrowed a bit when the Democrats shiv a couple more people and get them out of the race and then pick their eventual winner in their cobble um whenever that happens when Nancy Pelosi picks who's running. But, uh Steve, maybe you could start by Sorry guys, I got jokes. But, Steve, maybe you could introduce yourself a bit and tell us why you're running.
Well, hang on. Can I just say just after that great intro where you just tried to kill my chances in just a couple of words. Thanks a lot, Jason. Really appreciate it.
Let me actually tee this up. I've known Steve since 2012 2013 when he and his wife Rachel Wetstone moved to Silicon Valley. Rachel worked at Facebook initially and then she worked with you Jason at Uber and then has had a great run and then Steve similarly.
And you said it in a funny way, but ultimately this is an incredible land of immigrants and Steve has a really compelling story. So before we jump into the questions, I know your background, Steve, but I do think it's important go back to your parents, your mom, how you grew up,
And just set the stage for how you made it out from the way you started because I think that's important and then how you got to the United States and why.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- california fiscal policy
- tax policy
- housing costs
- education outcomes
- crime and homelessness enforcement
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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