Steve Hilton, a British-born naturalized American citizen and Republican candidate for California governor, joins the show. Hilton previously served as senior advisor to UK Prime Minister David Cameron at 10 Downing Street and moved to Silicon Valley in 2012 with his wife Rachel Whetstone, who worked at Google, Facebook, and Uber.

The conversation covers Hilton's background as the son of Hungarian refugees from communism, his political evolution influenced by Margaret Thatcher's reforms in 1980s Britain, and his comprehensive policy platform for addressing California's affordability crisis, regulatory dysfunction, and governance failures.

From Hungarian Refugees to Silicon Valley: Hilton's Journey

Hilton's parents were Hungarian refugees from communism, with his stepfather literally running across the border at age 14 during the 1956 Soviet invasion, facing barbed wire, minefields, and guards who killed half his group.

After Oxford University and various roles including Conservative Party work, Hilton became senior advisor to Prime Minister David Cameron, focusing on implementing reform programs before moving to California in 2012.

Hilton renounced his UK citizenship to become solely American: "I just wanted to be clear that I'm just to borrow the title of the show. You want it to be all in? Oh, yeah, literally."

Revolutionary Tax Plan: Zero Tax Under $100K

The tax plan eliminates state income tax for the first $100,000 of income and implements a 7.5% flat tax above that threshold, benefiting approximately 7 million households or about one-third of California families.

"The working poor, who aren't particularly being taken care of by the welfare system. They're working incredibly hard, but they're being squeezed by all these costs" - Hilton explains the rationale for targeting relief at working families.

The plan requires an 18.5% reduction in state revenue ($60 billion), bringing the budget back to pre-pandemic levels when spending has nearly doubled in the last decade.

Exposing California's $80 Billion Fraud Problem

Hilton's 'Cal Doge' team identified $425 billion in fraud, waste, and abuse over five years, averaging $80 billion annually or roughly 20% of the state budget.

Specific examples include $1 billion from climate funds where only $72 million went to actual solar panel installation, with $928 million diverted to Democratic activist organizations for "voter registration" and "environmental justice campaigns."

Cannabis tax revenue of $350 million designated for substance abuse prevention instead funded over 500 non-profits doing political activism rather than addiction treatment.

Housing Crisis: Union Power, Litigation, and Climate Dogma

California's housing crisis stems from three structural forces: "union power, litigation, and climate dogma" that make building costs two to three times higher than neighboring states.

CEQA lawsuits are filed 70% of the time to block housing, with most lawsuits coming from unions using them as leverage to negotiate project labor agreements requiring union-only workers at two to three times market wages.

Building fees in California cost $30,000 per door compared to under $1,000 in Texas, while Texas produces three times as many new housing units per capita annually.

Climate mandates require EV charging infrastructure, solar panels, and enhanced building codes that significantly increase construction costs without meaningful environmental benefits compared to states like Texas.

Energy Policy Disaster: From Self-Sufficiency to Iraqi Oil

California now imports nearly 80% of its oil, with Iraq as the number one provider, despite having abundant domestic reserves that could double production every two years with proper permitting.

The state went from 40 refineries to just 7, forcing reliance on tanker imports that create massive carbon emissions from "bunker fuel" - the most polluting form of transportation.

"As a result of Democrat climate policy, we are now expanding oil drilling in the Amazon rainforest in order to provide the right kind of oil for California's refineries" - Hilton on the policy's contradictions.

California's regulatory premium adds about $2 per gallon to gas prices, with most costs coming from regulations rather than taxes, making California gas more expensive than Hawaii despite abundant local oil reserves.

Education Failure Despite Massive Spending

California spends nearly $27,000 per student annually - among the highest in the nation - yet only 47% meet basic English standards and 35% meet basic math standards.

The teacher union monopoly prioritizes political activism over education, as seen when LA teachers' union demands for reopening schools included "wealth tax, Medicare for all, something about Palestine."

Mississippi achieves "spectacularly better" results at one-third California's per-student spending using phonics-based reading instruction and requiring students to repeat third grade if they can't read.

Hilton proposes implementing "a grade for every school and a grade for every teacher" to create accountability and reward effective educators while removing ineffective ones.

Crime and Homelessness: Enforcement Over Ideology

California reduced prison capacity by half while doubling the prison budget, creating a "catch and release" system that undermines law enforcement and public safety.

The 2024 Supreme Court case Grants Pass versus Oregon eliminated legal excuses for allowing homeless encampments, giving local governments clear authority to remove them immediately.

Over 80% of homeless individuals have drug, alcohol, or severe mental health problems requiring mandatory treatment rather than the current voluntary approach that Newsom supports.

California hasn't applied for federal IMD waivers that would allow Medicaid reimbursement for mental health facilities larger than 16 beds, forcing inefficient small-scale treatment options.

Path to Victory: Building a Working-Class Coalition

Trump received 6.1 million votes in California without campaigning or spending money, demonstrating sufficient Republican base for victory in a lower-turnout midterm election requiring approximately 5.9 million votes.

California's "wrong track" polling has shifted from mid-40s four years ago to mid-50s today, creating a majority appetite for change that favors an outsider candidate.

Hilton's "Calaffordable" platform targets working-class voters with concrete benefits: "$3 gas, cut your electric bills in half, your first $100,000 tax-free, a home you can afford to buy."

The voter ID ballot initiative in November 2026 will drive Republican turnout, while the multiracial working-class coalition that supported Trump provides the foundation for victory.