California has given up trying to make rich people stay and is planning to tax the heck out of 'em once they finally leave ๐Ÿ˜‚
ยท ยท Jan 25, 2023 ยท

The old saying goes: If you can't beat 'em, join 'em.

California, on the other hand, has opted for something decidedly more modern: If you can't stop them from leaving, then slap their estate with a personal property tax even if they don't live in California itself!

California lawmakers are pushing legislation that would impose a new tax on the state's wealthiest residents โ€” 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.

California watching rich people flee the state in droves and vowing to punish them for it:

To be sure, "exit taxes" are not a revolutionary concept. But California is plainly feeling the hurt from the mass exodus it's currently undergoing, so they're trying to recoup some of their losses:

[T]his bill also includes provisions to create contractual claims tied to the assets of a wealthy taxpayer who doesn't have the cash to pay their annual wealth tax bill because most of their assets aren't easily turned into cash. This claim would require the taxpayer to make annual filings with California's Franchise Tax Board and eventually pay the wealth taxes owed, even if they've moved to another state.

And let me tell you, the state is definitely hemorrhaging residents:

The state hasn't enacted this new law yet. There's still time to get out!


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