How Will California's Proposed Wealth Tax Affect You?

[Dennis Cosgrave]

AB 2088 establishes a first-in-the-nation net worth tax, setting a 0.4% tax rate on all net worth above $30 million. If successful, Illinois, New York, New Jersey and Connecticut are likely to follow suit. How will this tax effect you and what, if anything, will you do in response?

[Eamonn McElroy]

All a state level tax of this nature will do is further increase the exodus of high earners and businesses out of CA to lower tax states.

Joe Rogan has officially announced he's relocating to TX from Los Angeles and bringing the whole podcast crew along.  They'll be broadcasting the JRE from TX in the future.  The public reasons he gave for the move: healthy living, freedom, and taxes.

He will save a small fortune trading CA's income tax for TX's excise tax.  Good for him IMO.

The truth is that, in this country, we already have a wealth tax.  It is called the estate tax, and theoretically, yes, even that is double taxation.  An annual wealth tax is egregious and disincentivizes productivity.  The moral problem is that most people are willing to vote for it if it doesn't affect them.  Slippery slope there...  If the 1% leave, do we tax the next 1%, what if they leave?

I'm okay with it as long as this is a state level tax that never makes it to the federal level.  Let the states choose.  It's like a gentleman smarter than me said, we have "50 laboratories of democracy", let them experiment.