In a recent video by Forbes, Steve Forbes, the website’s editor-in-chief and a prominent business figure, sounded the alarm on California’s increasingly aggressive taxation policies. The state, already notorious for high taxes, is now considering a worldwide wealth tax that could have far-reaching consequences for its residents.
The “North Korea of Taxation”
In a dire warning, Steve Forbes dubbed California the “North Korea of Taxation,” shedding light on a proposed global wealth tax that could turn the Golden State into a fiscal nightmare.
The Democratic legislators in California are pushing for a wealth tax that targets the rich, starting at 1.5% on assets exceeding $1 billion. Even those with net assets of $50 million won’t escape, facing a 1% tax. This sweeping proposal covers almost everything – stocks, bonds, art, jewelry, and more, with real estate being the sole exception.
What makes this tax proposal particularly alarming is its extraterritorial reach. Not only would it apply to full-time California residents, but part-time residents would also be hit, with their liability determined by the number of days spent in the state.
Attempting to escape California’s tax clutches won’t provide relief either, as the state plans to pursue former residents wherever they may be.
Parallel with North Korea’s Extreme Measures
Forbes draws a striking parallel between California’s tax tactics and North Korea’s extreme measures against defectors.
While the latter resorts to more drastic measures, California opts for a different approach – relentless taxation, regardless of where you go. This proposed wealth tax is not just a financial burden but a monstrous invasion of privacy.
The intricacies of the tax proposal are mind-boggling. The state tax franchise board would scrutinize non-publicly traded assets, granting them unprecedented access to individuals’ financial portfolios.
Determining the value of these assets would likely lead to a flood of litigation, creating a bureaucratic nightmare for taxpayers.
To make matters worse, the legislation empowers lawyers to file individual suits against individuals they suspect of hiding assets. This opens the door to potential legal extortion schemes reminiscent of Tony Soprano’s tactics.
Governor’s Reassurances and Skepticism
Governor Gavin Newsom attempts to downplay concerns, claiming to be against a wealth tax. However, skeptics argue that his stance might shift, especially considering his political aspirations.
The state’s attractiveness is waning as California flirts with destructive ideas, including an exit tax and sky-high personal tax rates.
Steve Forbes concludes that a wealth tax is a “wealth killer.” The need to sell assets annually to pay the tax would depress their values, diverting attention from productive endeavors.
The comments are filled with Californians with a lot to say about this situation: “As a Californian it feels like Gavin Newsome won’t be happy until there are no tax payers left in California!”
“If people ever have the choice of Newsom on a presidential ballot, they need to take a good hard look at what he’s done (not for) but to California. The policies he’s put forth and those he’s supported has turned the once greatest state in the nation into a rats nest of crime, drugs, illegals and excess taxes. And he’d be more than happy to do the same for your state too.” added another commenter.
Others are chiming in with some extra info: “They cannot tax you if you leave the state, once you leave after the tax year current they cannot do anything, courts have already said so.”
One commenter concluded: “The people of California want the extreme taxes. They voted the people into office who do this.”
Mass Exodus and Economic Crossroads
With a mass exodus already underway, as residents flee the state in record numbers, California’s economic landscape is at a crossroads.
Forbes urges residents to stay informed and engaged in this turbulent financial climate. The potential consequences of this wealth tax could reshape California’s economic future, and the nation is watching as the Golden State grapples with its taxing predicament.
What are your thoughts? Is California risking economic prosperity with its proposed worldwide wealth tax, as outlined by Steve Forbes?
Could the invasive nature of this wealth tax proposal deter entrepreneurs and high-net-worth individuals from calling California home? In pursuing revenue, is California sacrificing individual privacy and fostering an environment of financial scrutiny?