California Attempting "Exit Tax" In 2024 To Prevent Fleeing Wealthy

This is just so wrong. California makes people live in a crime filled highly tax shithole and when people want to leave they a have to pay a tax on their net worth. In other words, people are hostages in their own state unless they pay a ransom.

Question: How will CA enforce this?

 

Exit taxes are legal? Can we deport illegals and bill them for the exit at the same time? Just curious

 

New York State has had something like this for a long time. When the late Rush Limbaugh left New York City, he was paying taxes like crazy to New York after he moved to Florida. These liberal states look for any way they can to get their hooks into wealthy successful people. They are desperate for money.

The down side for blood sucker states like California and New York is that wealthy people see that and know that they should not move to those states under any circumstances. As crime gets worse in those states, the incentive to move there gets to be less and less.

 

Its like when an abusive spouse locks the victim in the basement. Their net worth is what they have left over after paying taxes. This is double dipping.

To answer your question, CA will use the mighty franchise tax board to extort this money.

 

If they made it big in Calif, why not contribute?

 

If they made any money at all in CA then they paid taxes on it which is their contribution. And if someone made it big in CA, I doubt the state helped very much in any meaningful way.

 

They already paid high taxes on that money. They do not use any more roads, public services than anyone else, but paid far more than others. How is that fair?

 

Just the roads, laws, general infrastructure, those minor things.

 

This is what happens when government forgets that it serves at the pleasure of those it governs.

They also now have a "mansion tax".

 

Because failed third world governments like CA state governments are not smart contributions

 

That does not justify state blackmail

 

No blackmail.

 

Yes it is nothing more than blackmail

 

I spoke to my ex earlier today and she said when she sold her condo in NJ and moved to CA, NJ hit her with an exit tax. She also reminded me NY does the same thing.

 

Nope.

 

Please explain your reasoning.

 

Technically it would be extortion.

 

It actually would not be terribly difficult to enforce.

Things similar to this (but not as extreme) already go on.

The state simply issues an arrest warrant. In most all circumstances, other states automatically honor the arrest warrants from any other state, and will arrest and extradite the person to the state that issued the arrest warrant.

There is another thread about this here:
California proposes wealth tax that would follow residents even after they leave the state

 

Imagine a billionaire who moves to California, and then a few years later decides they want to leave.

How would this tax be fair to them?

I understand the impetus behind this tax concept comes from people who grow a business or build investments while in the high-tax state but then want to move to another state to sell their business and investments so they don't have to pay the tax on that income.
But other than that, the idea of a "wealth tax" is absurd. Those people were already taxed on their money when they earned it.

If a state is going to put a tax on the value of a business in its entirety, that is going to be like taxing an abstract concept. And to be that sounds like a slippery slope.

It's one thing to tax income or sales. That is obvious. Sometimes a state might put a tax on physical assets. But trying to put a tax on a whole business? That's going to end up trying to assess abstract concepts, like how much is an arbitrary structure worth, customer lists, supply chains, the fact that someone even figured out how to create the structure of a profitable business. It's not like they're just taxing the sale of the business building after the owner leaves the state.

 

Democrats and their bright ideas...... I can't imagine why anyone would want to leave such States...

 

the malignancy of class envy and the desire of some democrats to pander to it, has no end.

 

And the thing is, once they put this tax on the top 1% — the group of people who have the resources to fight it — after that, what then is to stop this tax from being applied to everyone else?

The rich will already be "out of the game" at that point, and won't have any incentive to fight it.

(It's well known it's far easier to prevent a law from passing than it is to repeal the law after it's already passed)

 

you don't think people who create successful businesses aren't already contributing. Payroll taxes for example. Income taxes on those employed. FICA "contributions"

 

Outright lie

you know it is

 

nope, sorry.