California proposes “exit tax” if you want to leave.

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[i[b]]Photo above[/b] - (Escapes of Wrath) - "Exit tax? Exit tax? Dang - we only just got here, officer."[/i]

Last week we dealt with Biden's “space tax”. A get rich quick scheme intended to open the wallets of Blue Origin, Space X, and anyone else considering launching people or satellites into space. Someone explained how this will simply cause those launch companies to shift their business to “no space tax” nations. How could anyone NOT see that coming?

Today's link (at bottom) is about California's exit tax. This tax is still moving ahead, under the assumption that Governor Gavin Newsom will sign it. And that it won't be ruled unconstitutional by the supreme court. (The US Constitution – in case you weren't aware – prohibits “tariffs and taxes” on interstate commerce). Although California's politicians may not be avid readers, at least SOME of their staff must be familiar with the laws of the land.

The new tax starts with billionaires, then quickly zeros in on ordinary millionaires. In just 2 years it starts hitting people with assets of $50 million. Which might SEEM like a lot. But if you have an almond grove, or a nice hotel, or a car dealership, you just had a bulls eye drawn on your back. People like Oprah, with TWO California mansions, collectively worth $100 million, are also targets. Perhaps the money will be used (in part) to pay the billions in black slavery reparations proposed in separate legislation? I'm being snarky here, but hypocrisy is hilarious, no?

So, if someone owns a vinyard which has been in the family for 3 generations, and the grandson isn't a wine cognoscenti, what then? Grandkid, you can't take the proceeds of sale out of state, if this law passes. If you try, the state of California will immediately seize 1% of the vinyard sales price. And 1% of everything else you own. Just because you're leaving. If the supreme court rules the tax is legal.

Okay, so let's assume the smartest guys in the room all leave BEFORE the new tax takes effect. That certainly gives the tax receipts a huge haircut, doesn't it? But wait, it gets worse.

Why would anyone even START a business in California (chips software, AI, film studio, hotel, battery car assembly line, etc.) if they knew in advance that on moving day the government was going to rob them. If you think this can't happen, then just look at the situation France finds itself in. A decade ago they passed a law intended to make it almost impossible to fire employees – or close a business – without government approval.

The result: Nobody wants to build new factories, or offices, in France. It's like signing up for perpetual wage obligations to indifferent union workers even if your business fails. Those companies instead are going to England and Germany.

California politicians not only never read the constitution, they also don't read the international section of the Wall Street Journal.

I'm just sayin' . . .

[u][b]California’s New Exit Tax for Those Moving Out of State (msn.com)[/b][/u]