California seems to find a new way to chase away residents every day: This time, they've cooked up another new 'wealth tax.'

Now California wants a wealth tax.

Florida, Tennessee, Texas, and many other states will gladly welcome "the rich" and everyone else who will be fleeing that state as a result.

This paragraph from Zerohedge says it all about Democrat policies in that state on budgetary items:

ACA 3 begins with six WHEREAS clauses including that California has long-term needs that are not being met by existing revenue sources; wealth inequality among state residents has increased dramatically; a tax on extreme wealth will restore fairness to California’s tax system and raise significant revenue to meet new and existing urgent needs; and, the State’s appropriations limit needs to be updated so that it also permits the state and local government to meet their basic obligations in a changing and more challenging world.

California and other states run by Democrats always talk about wealth inequality, yet their high tax rates do nothing to reduce inequality. Their policies essentially are meant to keep the poor and middle-class dependent on the government instead of giving their citizens the opportunity to move up the economic ladder.

Florida and California are respective examples of how to run a state and how not to.

California taxes the rich to the hilt and Florida has no state income tax.

California gets 70% of its revenue from income taxes and the top 1% pay fifty percent. The more they try to suck out of the rich, the more likely the rich are to move. When stock and real estate prices drop and/or the rich move in response, (because they have options), the worse shape California and other high tax states get.

Their solution is not to change their ways or to cut expenses, their reaction is to look for more taxes and fees and the destructive cycle continues.

I have a friend (real one 🤣) who has major software patents. He works in Texas and was offered a great job in Northern California (major high tech company) in the 1990’s. He visited the area, met with the company, look at housing and the California taxes. Even though he was offered a considerable pay increase, after taxes and increased housing cost were figured in, he would make less money in California. He turned down the offer.

That is one confusing and complicated “exit tax”.

Presumably the wealthy who are affected hire the best and brightest tax attorneys to minimize any impact.

If I were wealthy and still lived in California (even part time) I would bail now.

It is only going to get worse.

A wealth tax would be difficult to administer and enforce. It would require valuing assets such as real estate, art, and antiques, which can be difficult to do accurately. Additionally, it would be easy for wealthy individuals to hide or transfer assets to avoid paying the tax.

Also, a wealth tax could be detrimental to economic growth. It would discourage savings and investment, as individuals would have less incentive to accumulate wealth if they knew they would have to pay a significant portion of it in taxes. Additionally, it could lead to wealthy individuals and businesses moving to other countries to avoid the tax.

In addition, a wealth tax would be unfair, as it would disproportionately affect the wealthy, who have already paid a significant amount in taxes on their income and capital gains. Moreover, it would disproportionately affect the small business owners and entrepreneurs who have not yet realized their wealth through sale of business or liquidation of assets.

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