California Pushes Wealth Tax, Includes Those Moving Out of State

The bill is titled “Wealth Tax: False Claims Act.”

  • The state of California introduced a bill that would tax the state’s wealthiest citizens, including former residents of California who moved to a different state.
  • Assemblymember Alex Lee (D) proposed the “Wealth Tax: False Claims Act” that demands an additional 1.5% tax on those with a “worldwide” net worth of over $1 billion.
  • A “worldwide” net worth includes assets, land, art, and stocks.
  • Should the bill pass, the tax would begin in January 2024.
  • Those with a net worth exceeding $50 million are also to be taxed 1% annually beginning in 2026.
  • A similar bill was introduced in 2020 but was rejected by the state Senate.
  • The bill would also establish the Wealth Tax Advisory Council to “determine an adequate level of annual funding and staffing for the administration and collection of the wealth tax.”
  • “This is how we can keep addressing our budgetary issues,” said Assemblyman Lee, referring to the state’s $22.5 billion budget deficit.
  • Vice president of state projects at Tax Foundation Jared Walczak claimed the wealth tax would be “economically destructive, challenging to administer and would drive many wealthy residents — and all their current tax payments — out of state,” potentially defeating the purpose of the bill.
  • Walczak added that the bill could destroy businesses, as they would be taxed on “hundreds of millions of dollars’ worth of estimated business value that never actually materializes.”
  • The state of California passed several new laws going into 2023, some of which enable prostitution, punish doctors spreading so-called “misinformation” regarding Covid-19, and others.
  • California Democrat Governor Gavin Newsom claimed the Second Amendment was a “suicide pact” and called for stricter gun control measures while being surrounded by his armed security.
  • As of June 2022, California ranked number 1 in the United States for gun control measures as well as ranking first in active shooter incidents.