What's the view on legality of this? There's constitutional language and court rulings to believe that the federal government can't implement a targeted wealth tax like this, but I'm not finding anything that says the state of California can't do it.

And we all know this won't be a "one-time" tax. Once the Dem camel gets his nose under the tent, he's never satisfied with just once. Look at the expiring Obamacare enhanced credits that were supposed to be "temporary."

If they proceed with it, you'll see a massive drain of high net worth people leave CA for other states. Capital flows to where it's treated well, and populist confiscatory taxes aren't good treatment.

Quote:

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California's wealthiest residents could face a one-time 5% tax on their net worth under a new proposal aimed at replacing billions of dollars in federal funding cuts to healthcare.

The measure called the "2026 Billionaire Tax Act" seeks to counter $30 billion in potential federal funding cuts to California's Medicaid program, with a portion of the revenue earmarked for public education, according to supporters, which include the Service Employees International Union (SEIU).

"If we do not do this, millions of people are going to lose health care, an untold number of people will go without treatment and there will be tragedy after tragedy," Dave Regan, president of SEIU-United Healthcare Workers West, said in a statement

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https://www.foxbusiness.com/lifestyle/california-billionaires-face-one-time-wealth-tax

We should just make an official Blue State Tax thread and pin it or make this that because we've had multiple threads on this in the past 2 days. No offense to OP.

So, related to what California is trying to do you have Mamdani's tax plans for NYC which have been widely discussed and rightly ridiculed and then you have Illinois and Chicago.

- Illinois: wants an unrealized gains wealth tax on billionaires of which there are around 20 of them in Illinois. Four of the 20 are Pritzkers.
- Chicago: The Clown Mayor is now proposing a head tax of $21 per month on each employee at any company that employs >100 people if they come into the office at least 3 days per week. Even Pritzker opposes this one. That's how f'ing stupid Brandon Johnson is.

Washington and Oregon are on deck for their own idiocy so will standby for tax policy from them.

Edit: My one far left wing friend when to high school with Brandon Johnson in Chicago and he even says Brandon Johnson is a dumbass. My friend is an economic dunce so that's saying something.

Huge win for America if that gets overturned by the SC.

CA upper income people. Leave CA now!

infinity ag said:

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Wealth tax is a terrible idea. Good way to bankrupt a state. Only people on welfare will remain.

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Isn't that the plan?

Again, the 1% in California cover 50% of their budget. CA democrats playing with fire.

Violates the takings clause

infinity ag said:

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doubledog said:

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CA upper income people. Leave CA now!

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Do you want them all in Texas? Remember they are Dems/Libs.

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And they are getting that government they voted for good and hard.

doubledog said:

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CA upper income people. Leave CA now!

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Most of them are committed lefties and would support this nonsensical idea. You have to wonder when they will say enough is enough.

I hope they stay to experience what their leftist ideas will continue to bring.

Wasn't there a bill idea that floated around during the pandemic that they would try to tax people after they had already fled out of California? That feels like step 2 of this plan.

AgRyan04 said:

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Wasn't there a bill idea that floated around during the pandemic that they would try to tax people after they had already fled out of California? That feels like step 2 of this plan.

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There was something of that nature. It was like a claw back for 10 years after you left CA where the state would claim taxing rights to some of your wealth under the theory that CA provided an environment that allowed you to accumulate that wealth and therefore you owed your "fair share" to pay back the investment they made in you.

Absolutely nutty of course, and just demonstrates how wacko these leftist socialists are.

MemphisAg1 said:

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AgRyan04 said:

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Wasn't there a bill idea that floated around during the pandemic that they would try to tax people after they had already fled out of California? That feels like step 2 of this plan.

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There was something of that nature. It was like a claw back for 10 years after you left CA where the state would claim taxing rights to some of your wealth under the theory that CA provided an environment that allowed you to accumulate that wealth and therefore you owed your "fair share" to pay back the investment they made in you.

Absolutely nutty of course, and just demonstrates how wacko these leftist socialists are.

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And if they had actually done that I would have told them to pound sand. If I'm wealthy enough to get that kind of focus from them, then I'm wealthy enough to tie that up in the legal system forever.

Basic rule of maintain wealth is to never draw down the principal of a trust. Live off the earnings the principal provides. A wealth tax eats at the principal and will result in lower earning(taxes) that can be drawn down the road. Wealth isn't necessarily liquidity and if a bunch of people have to liquidate the value of their assets erodes quickly and the market for people wiling to buy assets erodes because the buyers know they will have to find a way to pay the wealth tax in the future. . Basic economics.

Horrible idea.

CyclingAg82 said:

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doubledog said:

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CA upper income people. Leave CA now!

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Most of them are committed lefties and would support this nonsensical idea. You have to wonder when they will say enough is enough.

I hope they stay to experience what their leftist ideas will continue to bring.

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I'm in agreement with you on that point.

Never underestimate the ability of a committed, unrepentant, stubborn and obstinate liberal completely to ignore the reality of the situation surrounding them and refuse to do the unthinkable -- change their mind.

I'm convinced their pride and ego will keep most of them from ever taking the proverbial 'red pill.' They simple can not fathom taking the hit to the psyche that would occur were they ever to admit they were wrong, even if only by a 'little.'

For them, it's full steam ahead, right into the iceberg.

kb2001 said:

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We need a California relocation tax in Texas. If you're moving to Texas, and you've had residence in California at any point in the last 5 years, you owe 20% of wealth off the top to be able to move in.

/only half joking

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This is a good idea. I would make an addition to this idea and then you could explain the why as "We are doing this to cover for your inevitable habit of voting for Democrat policies. Your contribution will go into a savings fund to cover the absurd policies you vote into place. You will also face a higher, ongoing tax rate until such time that you stop voting for Democrats."

Not only will High Net Worth Individuals leave Cali as fast as they can, they will probably take any and all their assets and businesses that they can with them.

I figure that at this point having any business interest in Cali is just foolish because they will try to find a way to tax you even if you never set foot into the state.

AgRyan04 said:

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Wasn't there a bill idea that floated around during the pandemic that they would try to tax people after they had already fled out of California? That feels like step 2 of this plan.

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Exactly what I thought.

What stage of 'eventually they run out of other people's money'? Halfway home, 75%?

Power hungry, virtue-signaling idiots causing their own demise. Screw up the fuel supply for your people and now this. Amazing situation unfolding before our very eyes. The arrogant, slick haired a-hole wants this for all of America too.

Remember useful idiots, there are only so many spots at the top. Is yours secured?

most wealth is in unrealized capital gains

Marxist dumb asses gonna marxist

MookieBlaylock said:

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most wealth is in unrealized capital gains

Marxist dumb asses gonna marxist

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And some of those unrealized gains are simply inflation, not a real gain.

MookieBlaylock said:

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most wealth is in unrealized capital gains

Marxist dumb asses gonna marxist

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Illinois has realized this which is why they have proposed an unrealized wealth tax.

I guess California is not yet aware of this which is odd since they are usually aware of things years before anyone else.

Nothing will clear out the wealthy quicker then telling them they have to sell off their assets just because they exist and the state wants to seize them

This is a test run for making the tax permanent, then lowering the threshold to capture average people who have average homes and average retirement savings

infinity ag said:

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doubledog said:

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CA upper income people. Leave CA now!

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Do you want them all in Texas? Remember they are Dems/Libs.

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Probably more to the left than folks in Texas or Florida, but perhaps not as far left as the rest of their state; either way, I doubt they're in high enough number to outweigh or outperform existing demographics or voting patterns in red states.

"If we do not do this, millions of people are going to lose health care, an untold number of people will go without treatment and there will be tragedy after tragedy," Dave Regan, president of SEIU-United Healthcare Workers West, said in a statement.

"This is VERY concerning." - Concerned Moderate

Has California stopped paying for illegals healthcare yet? That's millions of savings right there.

Class warfare brought to you courtesy of the left.

ts5641 said:

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Class warfare brought to you courtesy of the left.

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They (the left) only want to divide America.

The division of America began with BHO.
He hated America and held an apology tour to prove it.

Division was his game.
- Divide by color.
- Divide by income.
- Divide by religion.
- Divide by gender/sexuality.

Now we have more America haters popping up in NYC and Minneapolis.

The next 20 years will be a formidable period in American history.