CA Governor Candidate Steve Hilton on Why California is Destroying Itself & How a Republican Can Win

Hungarian refugee parents instilled anti-communist values

Hilton's mother and stepfather fled Soviet invasion of Hungary in 1956, with his stepfather running through minefields at age 14 to escape, shaping Hilton's appreciation for freedom and opportunity.

Renounced UK citizenship to run as 'all in' American

After serving as senior adviser to Prime Minister David Cameron in 10 Downing Street, Hilton became a naturalized U.S. citizen and formally renounced his British citizenship to demonstrate full commitment to California.

Thatcher era inspired pro-worker economic philosophy

Growing up during Britain's 1970s 'Winter of Discontent' with trash piled in streets and bodies unburied due to strikes, Hilton embraced Margaret Thatcher's focus on supporting workers over 'layabouts' through enterprise rather than welfare.

State parallels 1970s UK decline despite massive GDP

Hilton argues California exhibits the same union dominance, sclerotic growth, and overregulation that crippled Britain before Thatcher's reforms, hidden behind its status as the world's fourth-largest economy.

Highest unemployment and poverty rates nationwide

California leads the country in unemployment and ties with Louisiana for highest poverty rate, with United Way data showing over one-third of residents cannot afford basic needs despite working full-time.

Working class faces tax rates exceeding other states' maximums

Californians earning $70,000 to $90,000 pay a 9.3% state income tax rate that exceeds the top tax bracket in most other states, even as many counties officially classify $100,000 as 'low income' due to high living costs.

Zero state income tax for households under $100,000

Hilton's plan would eliminate state income tax for roughly 7 million households—over one-third of the state—providing immediate relief to the working poor who currently face the nation's highest gas, electric, and housing costs.

7.5% flat tax for all income above threshold

All earnings exceeding $100,000 would face a simplified 7.5% flat tax, replacing California's complex bracket system to encourage business investment and address the state's 50th-place ranking for business climate.

Requires rolling budget back to pre-pandemic levels

The tax cuts require an 18.5% revenue reduction of approximately $60 billion, which Hilton notes merely returns spending to 2019 levels before the state budget nearly doubled over the past decade.

Launched 'Cal DOGE' pre-election audit initiative

Hilton established the California Department of Government Efficiency to analyze published state spending data and expose fraud before taking office, partnering with state controller candidate Herb Morgan.

Documented $1 billion in specific program fraud

Hilton's team identified $100 million in annual fraud since 2015 in specific state programs, using published state auditor and Medicaid error rate data to estimate total waste that could offset necessary spending cuts.

Proposes using controller authority to halt improper payments

Hilton emphasizes that the elected state controller possesses legal power to audit any organization receiving state funds and immediately stop money flows where fraud or improper spending is detected.