California Democrats are considering a wealth tax on those who have recently moved out of the state, a move that has been met with criticism from conservatives. The new levy would require those earning more than $1 million a year to pay two percent on capital gains and other income earned outside of the state.
Proponents of the tax say it could bring in an estimated $7 billion annually to address various needs within the state, such as job creation and infrastructure repairs. However, this move has been seen by many as another example of government overreach, targeting those who could leave due to financial stability.
Instead of creating a tax system that would bring residents and businesses back to California Democrats have decided they are going to punish those who fled the state. Unfortunately, too-high taxes and conditions during the pandemic have driven away countless businesses in recent years – leading to fewer job opportunities and less money flowing into the state.
California isn’t the only state looking to punish those who fled their grasp.
Connecticut, Hawaii, Illinois, Maryland, Minnesota, New York, and Washington are all considering similar tax systems.
In perfect Democrat fashion, the bill not only tries to tax those who left the state, it also grows government. The bill will require $660 million per year to cover “administrative costs.”
“The proposed California wealth tax would be economically destructive, challenging to administer and would drive many wealthy residents — and all their current tax payments — out of state,” Jared Walczak, vice president of state projects at Tax Foundation, told Fox News Digital. “The bill sets aside as much as $660 million per year just for administrative costs, more than $40,000 per prospective taxpayer, giving an idea of how difficult such a tax would be to administer.”
From Fox News:
People are already moving from high-tax states into low-tax ones, according to a recent analysis by James Doti, president emeritus and economics professor at Chapman University. He found that the 10 highest tax states lost nearly 1 in 100 residents in net domestic migration between July 2021 and July 2022, while the 10 lowest tax states gained almost 1 in 100.
The great migration that started in 2020 led to Democrats not just losing tax money they’ve lost Congressional seats. Now they want revenge and are plotting tax codes to punish those that could escape.