The left’s demand for access to your wallet is insatiable. Just ask those who are fleeing the wreckage of Democratic Gov. Gavin Newsom’s reign in California.
Under Newsom, the Golden State has become tarnished, leading the nation in population decline for the last few years. More than a half-million people left California since July 2020 — roughly the population of Wyoming — and the drain cost California a congressional seat for the first time in its history.
Flee California if you will, but realize the tax man will keep coming.
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Led by left-wing Democratic Assemblyman Alex Lee, a group of California Democrats proposed a tax on “worldwide” wealth, Fox News reported on Monday. He claimed it was necessary to promote “tax justice.”
As Fox News noted, Lee’s measure would allow California “to impose wealth taxes on residents even years after they left the state and moved elsewhere.”
Under Lee’s proposal, according to Fox News, California would impose an extra 1.5% tax annually on people with a “worldwide net worth” of more than $1 billion. If enacted, the tax could kick in as early as next January.
By 2026, the taxing threshold would sink, hitting those with a worldwide net worth of at least $50 million. That group would be slapped with a 1% yearly tax on their wealth, while the rate for billionaires would remain 1.5%.
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Fox News pointed out that worldwide wealth means more than just annual income. The definition would include a variety of asset holdings, such as farm assets, artwork, collectibles, stocks, and hedge fund interest.
The Wall Street Journal notes that California leads the nation in the number of households with at least $1 million in “investable assets.” More than 1.1 million households in the state meet that criteria, nearly double runner-up Texas.
On the other hand, California already assesses the third-highest state income tax rate in the nation, trailing only New York and Oregon.
On Twitter on Monday, Lee maintained his bill would generate $22 billion a year — about the same amount as the state’s current budget deficit.
“Billionaires aren’t paying what they owe while enjoying public investments to build their empires,” he tweeted.
“My colleagues today and colleagues from 7 other states are introducing Wealth Taxes to bring tax justice. #TaxTheRich”
Critics of Lee’s plan told Fox News it would be unconstitutional to tax people after they leave the state.