This week California Democrats have once again shown their radical true colors when they forwarded a bill through the state legislature that would levy additional taxes on Californians. Nothing new for the Golden State, but the catch is that even residents who previously lived in California and moved away may be on the hook for Sacramento’s expenses.
As previously reported by the DC Enquirer, Alex Lee, a Democrat assemblyman, introduced California Assembly Bill 259 last Friday, co-sponsored exclusively by fellow Democrats. The bill proposes to “impose an annual tax at a rate of 1.5% of a resident of this state’s worldwide net worth in excess of $1,000,000,000, or in excess of $500,000,000 in the case of a married taxpayer filing separately.”
The bill would also tax “worldwide net worth” which includes stocks, bonds, cash, farm assets, offshore financial assets, pension funds, real property, debts, mortgages, and interest in mutual funds.
Most shocking for prior Californians is that the bill includes stanzas that would require taxpayers out-of-state who cannot easily pay the new taxes, given that the net worth tax includes assets that can’t easily be liquidated, to file with the California Franchise Tax Board. This requirement would force taxpayers to pay the state even if they have fled to greener pastures in other states, as reported by Fox News.
On Wednesday, financial expert Charles Payne joined Sean Hannity to discuss the new proposals leading to him blasting the bill for being “nuts.”
“Well, they’ve been working on one more really feverishly Sean because you are seeing such a massive exodus of people there and it’s the exit tax. Now, this came up a couple of years ago, they are trying to work it in where if you leave the state they can still tax you. It’s like the song ‘Hotel California’,” Payne explained. “You can check out any time you like, but your wallet can never leave…and it’s really nuts.”
“Here’s the rub. What did they say to justify this? Well, California wants to recoup some of the money that it’s invested into businesses and individuals,” the guest added.
“You know that old canard? We used to hear it a lot from President Obama. We hear it a lot from Elizabeth Warren — that if you walk on the sidewalk, somehow the state is partly responsible for your success?” Payne questioned. “Forget about the taxes we pay every day. Forget about the blood, sweat, and tears. Forget about the savings and the sacrifice. The fact that you live in California means that you owe California and how dare you to attempt to leave.”
Payne then went on to blame the repeated government handouts to Americans in recent years that have caused many on the left to have a mentality of redistribution.
“President Biden gave it his best shot last year. Earned income tax credits for couples making $300,000. They took the groundswell and they took it up a few notches. The government handing you money, paying you more money not to work than you would have made working. And of course with society, with children, with kids in school, they are trying to drive home this message. There’s something innate, something about the ethos of this nation. Raising yourself by your bootstraps, that’s still at our core. They haven’t been able to unwind it but they’ve done a very good job.”
If somehow someone has a whole lot more money than you do, something nefarious must be afoot and the government will make it right,” he said, adding, “They’ll take a big chunk from them, keep most for themselves, and give you a few crumbs.”
“If you live in California you need to do these things right now: You need to get out of the state, turn over your driver’s license, register your car in a different state, terminate all your club memberships while you’re there, relocate your family to a new state, get all your heirlooms and get it out of the state right now. Notify your friends that you’re moving, get your holiday and birthday cards to send them from your new address outside of California, change your professional affiliation, and finally limit any physical contact with California.”
You Can Follow Sterling on Twitter Here