Wanna be an a-hole? Do this: tax people for moving out of your state!
With this progressive taxation nonsense, a lot of the beautiful things that make Cali (entertainment industry) would've never developed in Cali
Cali needs to get back to what made it great. What made folks want to come their in the past.
Florida gets it. Georgia gets it. Texas gets it. Arizona gets it. Cali needs to get it as well.
If you love your state and want to extol to people the greatness, what would you do? Some folks would talk about all of the attractions in the state. Others might talk about its history, both as a state and a contributor to American history. Or you could even talk about the great people, both famous and anonymous, who hail from it. And every state has several people, from all walks of life, who have made the world a better place.
Want to know what California has decided to consider?
Tax folks who move out of their state.
I'm not kidding. Their leader, Governor Gavin Newsom, is recommending the passage of AB 2088. What is incredible is that this is a wealth tax. Of course, California's Assembly has a supermajority led by the Democrats. It would be an annual 0.40 percent tax on a taxpayer’s worldwide wealth above $30 million, not including real estate. What is making folks even more alarmed is the new exit tax. Involved in the wealth tax is an "exit tax", meaning it would tax people who leave the state and renounce their California residency.
Of course, one could quickly think, who cares? Those are rich people. Really rich people. They can afford it and it really doesn't affect the common man at all.
Such a thought would ignore both the lack of virtue in those proposed law, and the big picture of both taxes already and the books and how this can go downhill not just for top income earners, but everyone in the state.
For starters, California is already the most progressive tax state in the nation. They have the highest state income tax (12.5%), highest sales income tax (7.25%), increasing property taxes, and environmental taxes that the green warriors laud. Environmental taxes (taxing things like oil and gas), like property taxes, aren't just used by the 1%. They're used by EVERYBODY. And taxes are already insanely high. In fact, the top 1% already pays 46% of the nation's income taxes.
In other words, California's got taxes up the wazoo. And the Assembly thinks it's a great idea to add more? This particular tax, in addition to the .40 percent charge, goes up to dizzying heights toward penalizing high income earners. If someone were to have issues paying the tax when they leave the state, they could incur a penalty of 20% over 10 years! That is in addition to the taxes that they would owe.
I understand people want government to help with social issues, and believe that taxing folks who are financially well off will help alleviate people's lives and improve the safety net of a particular government. But let's not kid ourselves. California's government has been pitiful in that regard.
It's public school system is one of the worst in the nation. It has enough regulations over industries to make all other blue states blush. And housing prices are so expensive in the largest cities (where most of the population works) that people have to commute sometimes hours away in order to live comfortably and work.
And that's with all of the high taxes they have now. Yet, there's been no success from these extremely left-leaning policies.
Adding on to that, this will dissuade people from wanting to move to California. Both the wealthy and not wealthy will steer clear of the state if they can. The wealthy because such a tax would force them to tie down to a place without the freedom to leave without penalty. The rich aren't just entertainers who come to California. They are CEOs, business owners, and captains of industry. Those are the wealthiest folks who come to the Golden State.
And do you know what they also are? The reason why the common man should care about this tax? Job creators. New jobs help the state thrive. How can it thrive if there are not any new companies to create such jobs? Now, I grant that there will be the next great genius who will create something special in the state. But with this potential new law, they would just take their ball and go elsewhere.
And as with most taxes, there would be the snowball effect. The middle and working class always end up paying this tax, too. Whether it be five years after it takes effect or 10, there will be politicians in Sacramento who will see the folks that California is losing, and will go after the young family who thinks they would have a more affordable life if they went to neighboring Arizona or Nevada and hold this over their heads. It's already been done in California and other states with the taxes on gas (hence why the fuel prices are larger there then most other places). So there is no doubt it would be done with this.
As a matter of fact, NTU claims California's tax base has already shrunk. This would definitely help it shrink some more. Not only would this be challenged in court, but California might begin to see even more deficits in their state government, and wouldn't help with their already failing programs.
If the Golden State knows what is good for it, it'll abandon this quixotic attempt to tax people first for their wealth, then for their consent in leaving the state. California needs to get away from the idea of taxing their citizens and get back to the classic politicians on the right who knew that government is supposed to get out of the way as much as it can. That way, California can shine and get back to what makes it great. The beautiful diversity in climate, from the warm Mediterranean areas in the south to the Pacific Northwest-like vistas of the north. The amazing technological marvel that is the San Francisco Bay area. And, of course, the entertainment industry. That is what should be shining in California and will make people, including prospective residents, want to come.
Just a thought-if you add fiscally conservative principles, especially lower taxes across the board, that would be the cherry on top.