Posted on by Californiacontrarian

Increase the Stampede Out !

Say goodbye to more wealthy California residents as the lalapaloozas in  Sacramento often seem to be working overtime coming up with cockamamie new laws that will surely drive some wealthy individuals out of California.

From Fox News:

“California lawmakers are pushing legislation that would impose a new tax on the state’s wealthiest residents — even if they’ve already moved to another part of the country.

Assemblyman Alex Lee, a progressive Democrat, last week introduced a bill in the California State Legislature that would impose an extra annual 1.5% tax on those with a “worldwide net worth” above $1 billion, starting as early as January 2024.

As early as 2026, the threshold for being taxed would drop: those with a worldwide net worth exceeding $50 million would be hit with a 1% annual tax on wealth, while billionaires would still be taxed 1.5%.

Worldwide wealth extends beyond annual income to include diverse holdings such as farm assets, arts and other collectibles, and stocks and hedge fund interest.

The legislation is a modified version of a wealth tax approved in the California Assembly in 2020, which the Democrat-led state Senate declined to pass.

The current version just introduced includes measures to allow California to impose wealth taxes on residents even years after they left the state and moved elsewhere.”

To me this sounds like a version of “don’t let rich people screw California like Elon Musk did.” If you recall a few years back, during Covid, Elon Musk left California and took his Tesla company with him. Infamously, when Musk threatened to leave in May, 2020, State Assemblywoman, Lorena Gonzalez tweeted, “F**k Elon Musk”

Later in October, Tesla CEO Elon Musk confirmed that his company’s move to Texas was, in part, inspired by a California lawmaker’s incendiary tweet to him.

Strong work Ms. Gonzalez! In the last three years your poorly thought out and poorly phrased insult has undoubtedly cost California millions in tax revenue, and year after year, it just keeps on robbing the state of tax revenue that should still be in California. The Democrats in the legislature in California, instead of making California a better place for the super-wealthy to live, are about to repeat Gonzalez’s dumbass mistake but without using the ‘f-word!’ This potential new law will merely increase the stampede out of California to greener pastures! 

Even though taxing wealthy individuals after they have left California will eventually be judged to be unconstitutional, the threat that this absurd bill will pass will undoubtedly drive many wealthy individuals out of the state. When this happens it will have a Gonzalez-like effect that will penalize the state for many, many years to come as these super-rich individuals will now be paying their taxes elsewhere!

1/27/23

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