Guest Post by Martin Armstrong
People have been leaving California in droves due to Governor Gavin Newsom’s socialistic Utopia that demands everyone be taxed on every penny they earn. I’ve long warned that California was unfriendly for businesses and investors. Those who stayed behind will now need to pay to leave under Assembly Bill 2088.
California plans to implement a one-time tax for businesses and individuals fleeing the Golden State. The government will look at all of your assets and investments to determine how much you will need to pay, which is usually 0.4% of someone’s net worth. Wealth historically flees when taxes rise, and to combat this issue, California plans to tax anyone with an income for $30 million for up to a full decade after they leave the state. Someone leaving the country entirely will still be forced to pay California for the privilege of leaving.
California first implemented an exit tax in August 2020 when they saw businesses and individuals lining up to leave the state that faced some of the harshest lockdown penalties in the nation. Uhaul and other moving organizations reported shortages on shipping vehicles as the demand to flee was so high.
Per usual, this tax was first introduced as an “eat the rich” penalty for those earning over $30M. And again, as usual, the tax expanded to target everyone. Small businesses that are already struggling to survive in California’s climate may feel trapped in the state. Individuals who can no longer afford the cost of living in California are also unable to leave without forfeiting money to the state. Afterall, the majority of people who live in California rent if they actually have shelter. Why anyone would want to conduct business in or through California is beyond me as Newsom is clearly targeting everyone who merely associates with California.
Another reason the Socialists introduced this tax is to steal capital gains. They wanted to tax unrealized gains to no avail but were prohibited by the courts. Now they are worried people will move out of state and cash out elsewhere. So California wants to tax all investments to ensure they get a cut of YOUR money that they do not have a right to claim.
The state dug themselves into the deepest deficit in the nation. The decision-makers do not believe they are the problem. They believe the greedy businesses and individuals are the problem and deserve to pay for their mistakes through unending taxation. Accumulating wealth is now a punishable offense in parts of the “free world.”
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal
-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
I don’t see how they could even enforce this without the complicity of not only the Feds but other states.
I cannot imagine Florida, for instance, of 🤝 to this for new citizens of that state.
Sounds 100% unconstitutional and challenged in court will be unenforceable.
Of course large corps have the money and capital to fight it whereas the little guy does not
Run your biz to the ground while you quietly move your shit elsewhere.
Then shutter and quietly move.
One more nail in the coffin.
I agree, are they going to extradite millions of people for not paying the exit tax? Large businesses might be different, the state could have more leverage against them.
Simple enforcement. Sell the house . Pay the tax. In the long run , the demand to buy in California will go way down.
The inevitable result of “You didn’t build that,” is that nothing gets built.
Interested to see if this passes and what they do with the Oakland A’s MLB team….even though they are bad, I dare say that MLB teams still pull in some $. Not that I ultimately care, but that would be a pretty high profile situation. Grab some popcorn…
It is only a tax on rich people….for now. Eventually the ceiling will be lowered until it impacts mostly middle class. I foresee a time when if you rent a Uhaul or hire a moving company if the truck is going out of state CA will impose a tax on the business which will be passed on to you.
We’re supposed to have freedom of movement in the US without penalty, but then again it’s not as if rule of law has been popular lately.
Since California law ends at their boarders I’m curious how they plan to collect the state tax from those that no longer live in the state.
exactly…. tell govnah nuisance to go pound sand…. problem solved
Nuke it all from space…it’s the only way to be sure.
Every US Citizen has a right to travel, which includes the right to relocate to other States.
The State of California cannot Constitutionally tax your right to travel.
Of course if you voluntarily pay the tax, that is on you. Personally I would tell them to pound sand and let them try to prosecute me for it.
You forgot that your money has no such right.
Somewhere I recall the SCOTUS finding a ‘right to interstate travel’ in the Constitution … that should shortcut this monstrosity.
In the old case of Edwards v. California, CA tried to prevent Okies from entering the State during the Depression … SCOTUS said no dice … we are one Nation and folks can travel among the States as they wish.
Californeea gon be lit wen da powe go off.
unlit
nope… the fires will burn brightly
I don’t know how it is out there in Kalfornica, but in GA, you stand between me and a door I want to use and you’re eating copper plated lead.
Eat lead, ChodeGPT.
Letting your chihuahua sized demon out for a stroll this morning, are ya?
Don’t forget to pick up his shit!
My real worry is when these Californians turn wherever they move to into another California. Just like Muslims leaving their shit hole country but demand to turn their new adopted country into a shit hole, identical to where they came from. Arizona, Colorado and Nevada use to be hardcore “red” states but have been successfully flipped to “blue”.
You needn’t worry. It’s going to happen. It’s happening as we speak. It’s been happening right along. It’s already happened.
However you choose to put it, we’re fucked.
OT: you must catch a lot of shit from the Harley community riding an AMX! I can see why you’d gravitate to this place!
Stick that with the unrealized capital gains tax and you have two more stakes through the heart of the productive part of the economy. Remarkable what people will put up with, even more remarkable what people will come up with if they think people will put up with it. Jail’s about the only place I can think of where you gotta pay just to leave.