California New Insane Taxes: Leave Before It's Too Late

TL;DR

California is implementing an exit tax on individuals and businesses with a net worth of over $30 million who leave the state, in addition to imposing a wealth tax on billionaires and multimillionaires. The state also intends to weaponize attorneys to enforce tax compliance.

Transcript

some insane news from California they now want to tax you if you leave the state for many years in the future the United States already has an exit tax on everybody worth over $2 million us when you renounce your citizenship just like I did many people have paid millions of dollars in exit taxes now California wants to do it on a state level once y... Read More

Key Insights

• 👨‍💼 California aims to generate revenue by targeting wealthy individuals and businesses through exit taxes and wealth taxes.
• 🥺 The state's implementation of the exit tax may lead to an exodus of wealthy individuals, similar to what happened in Norway.
• 👨‍💼 California's aggressive taxation policies and controls may contribute to a decline in business activity, loss of wealth, and deteriorating real estate market.
• 👏 The use of attorneys to enforce tax compliance raises ethical concerns and may create a hostile environment for wealthy individuals and businesses.
• 🌱 The state's minimum wage increase and emphasis on automation suggest a larger plan to control the population and increase government influence.
• ❓ California's taxation policies may inadvertently contribute to an increase in wealth disparity and hinder economic growth.
• 🍃 Wealthy individuals considering leaving California should be cautious about their social media presence, as it could be used to extract more taxes from them.

Questions & Answers

Q: What is California's exit tax?

California's exit tax applies to individuals and businesses leaving the state with a net worth exceeding $30 million. They must pay 4% of their taxes for the next 10 years.

Q: When will California introduce a wealth tax?

California will impose a wealth tax on individuals worth $1 billion or more starting in 2024. In 2026, individuals with a net worth of $50 million or more will also be subject to the wealth tax.

Q: How will California enforce tax compliance?

California will weaponize attorneys to investigate tax evasion. Attorneys can extort money from individuals or report them to the state for tax payment. This incentivizes attorneys to scrutinize individuals' assets and net worth.

Q: Will businesses be affected by California's exit tax?

Yes, businesses with operations in California worth over $30 million will also be subject to the exit tax when they leave the state, in addition to paying the state income tax rates.

Summary & Key Takeaways

• California has introduced an exit tax for individuals and businesses leaving the state, targeting those with a net worth exceeding $30 million. They will be required to pay 4% of their taxes for the next 10 years.

• The state plans to impose a wealth tax on individuals worth $1 billion or more, starting in 2024. In 2026, individuals with a net worth of $50 million or more will also be subject to the wealth tax.

• Attorneys in California are being encouraged to investigate potential tax evaders and can extort money from individuals or report them to the state for tax payment. Businesses with operations in California worth over $30 million will also be subjected to the exit tax.