this week State of California revealed He said he had approved enough signatures to put the proposed confiscation tax on the ballot next November. This means there is a high probability that the abusive tax will become law.
The tax was created by several economists who wanted to generate more revenue for the State of California, which is already home to the highest state taxes in the country. Initially, the tax will target anyone worth over a billion dollars. Since California is home to many major tech companies and founders, this could mean some of the state’s biggest innovators will find themselves in the crosshairs of tax collectors.
The proposal targets total wealth, so this could mean shares in a company, perhaps forcing a person to sell some of those shares to cover unrealized gains. This may also affect the founder’s control over the company he founded. This strict policy has already caused many high-profile entrepreneurs to flee California.
Although the proposal initially targets billionaires, it charts a path for future expansion as California’s government spending continues to rise.
Successful Governor of Florida, Ron DeSantisstated on X yesterday, this “If this passes, it won’t be limited to billionaires. It will do so when the camel’s nose gets under the tent and the government has the power to seize property.”
Already exists in California A huge state budget of 350 billion dollars, The country’s highest, at $220 billion, pushing New York into second place
an article Since the beginning of this year, the chronic deficit has been underlined as revenues cannot meet expenses. Governor Gavin Newsom and the legislature approved it.
There is a multi-year budget deficit estimated at $20 billion to $35 billion annually due to fiscal mismanagement.
“These deficits are concerning for three reasons. First, after four years of projected deficits and the resolution of the budget problem totaling $125 billion so far, the state’s negative financial situation is now chronic.”
Florida has a budget of 114.5 billion dollars. I’m trying to lower taxes – most prominently property taxes imposed on residents. Florida does not currently assess any state income taxes, unlike California.
Yes, Florida’s population is smaller at around 23.6 million compared to California’s 39.5 million, but Florida’s population is increasing while California’s population is decreasing.
Many of these people are voting with their feet and migrating to Florida.
While the California forfeiture tax would certainly cause additional wealth to flee the state, it is estimated that more than $1 trillion in value is already remaining.
While the culpable forfeiture tax has become California’s rule that has led to a greater flight of wealth, perhaps a simpler approach would be to address the deep fraud that undermines the state’s ability to operate.
From a failed high-speed rail project that spent $15 billion with no trains in sight or an unemployment insurance system, and Medical Where (California’s Medicaid program) has hundreds of billions of dollars stolen from taxpayers, perhaps what California needs is not more taxes, but better government and leadership.
Meanwhile, Florida (and Texas, Tennessee, etc.) is open for business.
