Steve Hilton and Xavier Becerra clash over taxes, housing and AI in California debate

Steve Hilton and Xavier Becerra clashed over taxes, housing and artificial intelligence regulation in a CNN debate in Burbank, California, on September 30. The Republican and Democrat are competing to succeed term-limited Governor Gavin Newsom in the November 3 election. Their first and only scheduled debate gave voters a direct comparison of their proposals before ballots begin arriving by mail.

The debate put detail behind an issue already covered in NewsJaws’ account of Hilton’s household-cost promises: how he says he would lower expenses, and how Becerra says the state would pay for those cuts. Their exchange also exposed differences over housing construction and the role of government in overseeing AI companies based in California.

Hilton’s tax cuts and Becerra’s funding challenge

Hilton proposed eliminating state income tax on the first $150,000 of income and scrapping the state’s 63-cent-per-gallon gasoline tax. He said leaving more money with residents was the quickest way to ease the cost of living. Asked how he would pay for the reductions, he pointed to cancelling California’s high-speed rail project.

Becerra disputed the arithmetic. He argued that Hilton’s wider plan would also give wealthy Californians a 40% tax cut and that lost revenue would come at the expense of schools, health care and housing. Hilton acknowledged that his proposals extended beyond the first $150,000 of income, saying he also wanted to encourage job creation. Neither candidate established the fiscal effect of the plan during the debate.

Different plans for California housing

On housing, Hilton said he would cap government fees and regulatory costs on an average new home at $50,000. He characterized the current cost as $200,000 and said his cap would lower the price of a new home by $150,000. Those figures were his claims in the debate, not a demonstrated estimate of what buyers would save.

Hilton also proposed building 10 new cities, with counties bidding to host them. When CNN’s Jake Tapper asked how many homes would be built during a Hilton administration, Hilton gave no number. He argued that communities should build housing suited to their needs instead of working toward a statewide target.

Becerra pledged to at least double the rate of homebuilding. He proposed cutting red tape, expanding down-payment assistance and enforcing state housing law against local governments that fail to build. He cited a lawsuit he brought against Huntington Beach as California attorney general as an example of that approach. The debate did not establish how quickly either candidate’s proposals could add homes.

Where the candidates stood on AI regulation

Hilton said California should lead regulation of the AI industry while keeping more AI-related jobs in the state. He called for an immediate pause on AI in classrooms, citing concerns about children’s learning. Asked whether companies could police themselves, he said their commitments might need to be backed by regulation or legislation and that he would assess how quickly they acted.

Becerra called for safeguards covering children, workers, public safety and privacy. He argued that Hilton’s answer placed too much trust in AI companies. Their disagreement matters in a state that hosts major AI firms, but neither candidate set out in the cited exchange a complete legislative plan or showed what a future regulation would achieve.

The candidates also sparred over Trump administration policy and immigration. Becerra accused Hilton of favoring immigrants who looked like him while wanting to deport immigrants who looked like Becerra; Hilton called the remark disgraceful. The exchange showed how sharply they differed in tone, although the debate itself cannot establish how either would govern.

Ballots and the November 3 election

The Guardian reported that Becerra supported opposition to Proposition 39, a ballot measure it described as requiring government-issued identification for in-person voting, while Hilton supported it. Their split gives voters another policy distinction alongside the governor’s race. Mail ballots were expected to reach voters within days of the debate, and the general election is scheduled for November 3.

The debate produced campaign proposals and challenges, not enacted policies. Hilton did not give a homebuilding target, and the candidates’ claims about tax savings, public services and AI safeguards remain unresolved by their hour on stage. Voters now have the candidates’ own answers to weigh as voting begins.