I'm no fan of California - a personal prejudice - but some crazy California activist has come up with a GREAT way to totally kill the state. I'm thinking this has no chance of even coming close to becoming reality, but it's got one interesting caveat which makes it noteworthy. See if you can spot it:
Impose a new 35% income surtax (in addition to federal taxes and the existing 10.3% top state rate) -- 17.5% (on all of the taxpayer's income) when income exceeds $150,000 (single)/$250,000 (joint), and an additional 17.5% (again, on all of the taxpayer's income) when income exceeds $350,000 (single)/$500,000 (joint).
Impose a one-time 55% wealth tax on assets exceeding $20 million held by a California resident or held in California by nonresident.
Impose an exit tax of between 36.5% to 54.3% on both income and unrealized appreciation in asset values over $5 million when a resident dies or leaves California.
Now, for those who believe a 35% tax on the rich ain't all that bad, you have to remember this is on TOP of Federal taxes. These
But, my favorite part is the last bit. The part about an exit tax. You are not allowed to LEAVE California without handing over half your assets to the State. You know, I think the commies used to built big walls with armed guards.
h/t some Moron blogger over at Ace's.