People Are Moving Out of California, Reducing Their Tax Base, So California Decides: We'll Just Continue Taxing All the People Who Have Left the State As If They Are Slaves Who Still Owe Us Their Labor In Perpetuity

Trump's an authoritarian, you guys. The Bullwork Bois, The North American Man-Boy Lincoln Association, and Allahpundit told me so.

Jonathan Turley:

California lawmakers appear intent on making the Eagles song Hotel California a reality ... at least when it comes to taxes for those who try to flee the state. At the Hotel California, "you can check-out any time you like, but you can never leave!" With soaring costs and a massive $24 billion deficit, the state is also facing an exodus of people leaving the state. The solution? Convert the state into a tax Venus flytrap: not only impose a wealth tax on those caught in the state but tax those who try to leave.

The new bill introduced by Democratic Assemblyman Alex Lee would impose an extra annual 1.5% tax on those with a "worldwide net worth" above $1 billion, starting as early as January 2024.

The law has a cynical bait-and-switch provision. The billionaire tax is just meant for the initial packaging and passage. It can therefore be sold as a "billionaire's tax." However, in two years, the threshold drops to a worldwide net worth exceeding $50 million. While billionaires would stay at 1.5%, those in the lower tax bracket would be hit by a 1% added rate on worldwide assets.

It also includes the taxation on those who left the state . . . many due to the high taxes. California already has the highest tax burden in the nation. It relies on its top 1% of taxpayers for roughly half of its individual income tax revenue, but continually treats those taxpayers like game in a canned hunt. The result, not surprisingly, is that they are leaving for states like Texas and Florida.

The new tax would arrange for payments to California's Franchise Tax Board for years after a departure for those assets which are not easily converted into cash.

...

Under the existing exit tax, businesses and individuals must pay a one-time tax to leave based on the value of the business or individual's assets, including property, stocks, and other investments. For those who have earned more than $30 million, you can continue to pay for years after fleeing the state. The current exit tax is 0.4% of an individuals' net worth over $30,000,000 in a tax year, including assets located outside of California other than real estate.

The Blue States must die.

posted by Lamont the Big Dummy at 01:48 PM

| Access Comments