All-In Podcast
All-In Podcast: Steve Hilton’s California Bid: Thatcherite Roots, Tax Cuts, and a Direct Challenge to Union Power
Steve Hilton, a British-born Republican and former adviser to David Cameron, leads California’s governor race by targeting union dominance, high taxes, and regulatory barriers. He argues that entrenched interests—not ideology—are holding the state back, and proposes a sweeping tax overhaul to shake up the status quo.
If you only read one thing
Steve Hilton is running for California governor with a blunt message: the state’s real crisis is a political cartel of unions and insiders, and he’s betting voters are ready to break it.
Steve Hilton, once a senior adviser to UK Prime Minister David Cameron, is now the Republican frontrunner for California governor. Drawing on his family’s escape from communist Hungary and his Thatcherite upbringing, Hilton sees California’s current woes—union dominance, high taxes, and regulatory sprawl—as a repeat of the UK’s 1970s stagnation. He proposes eliminating state income tax for those earning under $100,000 and instituting a flat 7. 5% rate above that, arguing this would help millions of working Californians squeezed by high costs. Hilton claims the state wastes $80 billion a year, pointing to misused climate and cannabis funds, and says spending cuts could restore the budget to pre-pandemic levels.
On housing, he details how union-backed lawsuits and climate mandates drive up costs, with $30,000 in fees per apartment compared to under $1,000 in Texas. Hilton insists most environmental lawsuits are union tactics for labor deals, and that Governor Newsom’s housing bills are giveaways to those same unions. Despite California’s Democratic dominance, Hilton argues a Republican governor could force change, citing bipartisan interest in tax relief and his own coalition-building experience. He believes the real obstacle is not ideology, but insiders protecting their turf—and that voters are ready for a shakeup.
Why it lands
Hilton’s campaign tests whether California’s blue-state dominance is inevitable or simply the result of entrenched interests. If his diagnosis is correct, it could signal an opening for reformers in states long considered unwinnable for Republicans.
A Thatcherite in Sacramento?
Hilton’s worldview is shaped by his family’s escape from communist Hungary and Margaret Thatcher’s fight with British unions. He sees California’s problems—high taxes, union power, regulatory sprawl—as a repeat of the UK’s lost decades.
- Hilton’s stepfather fled Soviet tanks in 1956; family values shaped by anti-communism and Thatcherism.
- He draws a direct line from 1970s UK stagnation to California’s present: ‘Mrs. Thatcher’s for the workers and labor are for the layabouts.’
- California’s state income tax rate for middle earners (9.3%) is higher than most states’ top brackets.
The Tax Revolt, Rebooted
Hilton’s main policy: no state income tax under $100,000, and a flat 7. 5% above that. He says this would help over a third of California households and force the state to cut waste, not services.
- California’s budget has nearly doubled in a decade; Hilton says $80 billion a year is wasted.
- He points to $1 billion in climate funds and $350 million in cannabis taxes diverted to political nonprofits instead of their intended purposes.
- The tax cut would reduce revenue by 18.5%, rolling spending back to pre-pandemic levels.
Why Housing Is So Expensive—And Who Benefits
Hilton blames California’s housing crisis on union-driven lawsuits, regulatory fees, and climate mandates that drive up costs and block new supply. He says most CEQA lawsuits are union tactics to secure labor deals, not genuine environmental concerns.
- It costs $30,000 per apartment in government fees in California, versus under $1,000 in Texas.
- Texas builds three times as many homes per capita as California.
- Newsom’s housing bills offer regulatory exemptions only to projects with union labor agreements.
Can a Republican Really Win?
Despite California’s blue reputation, Hilton argues the right candidate can break through by focusing on practical issues and exposing the system’s self-dealing. He cites Pete Wilson and Schwarzenegger as proof it’s possible, and points to bipartisan support for tax relief.
- Hilton is leading a crowded Republican field and claims some Democrats are open to his tax plan.
- He has experience negotiating across party lines from his time in the UK coalition government.
- ‘It’s not farcical to think a Republican can’t win here.’
Worth stealing
- Hilton’s outsider perspective and Thatcherite economics shape his diagnosis of California’s problems.
- He proposes a concrete tax plan that would shift the burden away from the working poor.
- Union power and regulatory capture are central to his critique of housing and governance.
- He believes bipartisan support is possible on tax relief, despite Democratic dominance.
- The episode tests whether California’s political status quo is as stable as it appears.
Lines worth repeating
Mrs. Thatcher’s for the workers and labor are for the layabouts.
Steve Hilton
If you make between 0 and $100,000 a year as a California resident under your plan, no state income tax.
Steve Hilton
It's 30,000 per door in fees to the government.
Steve Hilton
It's not farcical to think a Republican can't win here.
Steve Hilton