In what can only be described as an admission that their woke policies are failing, California Democrats are in the process of passing legislation that would allow the state to tax people even after they have left, Fox News reports.
The provision is included in legislation that would see an extra 1% tax imposed on those who have a world-wide net worth in excess of $50 million and a 1.5% tax on those with a worldwide net worth exceeding one billion dollars.
Not only would people be taxed based on assets held outside California, the legislation would potentially apply the tax even if they leave. This is because it also requires them to make annual filings, as long as they hold assets in the state, even though they no longer live there.
Despite significant questions about the legality of such legislation, experts warn this could devastate the California economy. It will only further incentivize those with money to flee the state and as well to make sure they no longer have assets, such as a home or business, in California.
If the rich continue to abandon California, it could potentially destroy the state’s tax base as studies have shown that the top 1% of California income earners supply 50% of the state’s tax revenue.
According to Chapman University economics professor, James Doti, between July 2021 and July 2022, the ten highest taxing states lost one in a hundred people, while the ten lowest states saw a corresponding increase of nearly the same amount.
READ: California Democrats consider wealth tax — including for people who moved out of state