All-In

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

with Steve Hilton
29 Apr 2026 8 min read 1h 4m
TL;DR

Steve Hilton argues California is repeating 1970s Britain's economic collapse due to union dominance, regulatory overreach, and climate dogma, and proposes eliminating state income tax for 7 million households earning under $100k while implementing a 7.5% flat tax to recover an estimated $80 billion annually in fraud, waste, and mismanagement.

Key Moments
Steve Hilton
“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.”
Hilton responds with humor after Jason jokes about him being a Republican Brit running for California governor
▶ 0:53
Steve Hilton
“We really are there. There are so many things I see in California today that are exactly like the UK in the 70s. You've got the massive dominance of the unions in policym. You've got a slurotic economy. You've got massively high taxation.”
Hilton draws parallels between California's current state and Britain's economic crisis under 1970s labor dominance
▶ 7:15
Steve Hilton
“Our estimate was 425 billion. So averaged over the years it's about 80 billion a year. So that's so it's around, you know, 20% or so.”
Hilton reveals his team's findings on fraud and waste in California's $350 billion annual budget
▶ 20:09
Steve Hilton
“The same exact floor plan, house, apartment building, industrial building, whatever it is, cost cost two or three times more to build in other in in California than in neighboring states.”
Hilton explains why California's housing costs are dramatically higher than neighboring states
▶ 29:54
Steve Hilton
“I literally called it Cal Do California Department of Government Efficiency. I know that's a controversial brand, but you know, then the idea of it efficient government is something I think everyone would support.”
Hilton describes his campaign's dedicated fraud investigation unit modeled after DOGE
▶ 16:05
About Steve Hilton
›
Steve Hilton is a British-American political strategist and California gubernatorial candidate who served as senior adviser to UK Prime Minister David Cameron at 10 Downing Street. After moving to Silicon Valley in 2012, he became a fellow at Stanford's Hoover Institution and worked in tech policy. He's now leading California's Republican primary with a radical tax plan: zero state income tax for earners under $100k and a 7.5% flat tax above that threshold.
Takeaways
1
California budget fraud totals ~$80B annually Hilton's team identified $425 billion in estimated fraud, waste, and abuse over five years—roughly 20% of the state's $350 billion budget. Specific examples include $1 billion from climate mitigation funds redirected to nonprofits, $350 million from cannabis tax earmarked for substance abuse prevention diverted to activism, and $3.8 billion from homelessness programs enriching developers with minimal housing delivery.
2
Construction costs 2-3x higher in California Identical building projects cost 2-3x more in California than neighboring states due to three structural barriers: climate-driven building codes (EV charging, solar mandates, insulation), California Environmental Quality Act litigation enabling union leverage, and prevailing wage requirements (2-3x market rates). These combine to make affordable housing construction economically unviable at scale.
3
Tax plan targets working poor, flat tax for growth Hilton's proposal eliminates state income tax for ~7 million households earning under $100k (about one-third of California) and implements a 7.5% flat tax above that, reducing revenue by 18.5% (~$60 billion). This requires matching spending cuts to pre-pandemic levels, when the budget was roughly half its current size, suggesting sustainable reductions rather than service elimination.