Written by Juan Sebastian Fragozo
There is a recurring idea by the people on the left of the political spectrum that those citizens who have wealth should give some, if not most, of it to sectors of society that have less. California Democrats like to force this ideology in the form of taxes on the wealthy.
The officials of California think they know best how to redistribute everybody’s wealth.
Whether you are a successful investor or simply a property owner that worked hard to achieve your goals, the truth is that the government thinks that you have too much and therefore some of your wealth should be given to someone in need. To give an example, the California Federation of Teachers is sponsoring a “Tax on Extreme Wealth.” This legislative package would add a 1% tax on wealth in excess of $50 million per household in the State, with an additional 0.5% tax on wealth in excess of a billion dollars.
With this, the Union thinks it can help the State raise $22 billion dollars to fund the recovery. According to the Franchise Tax Board, the wealthiest Californians pay a top marginal state income tax rate of 13.3%, the highest in the entire United States. In terms of property, using Covid relief grants, some properties can be turned into homeless housing with minimal notice given, and the usual process for approval or change of the use of land is not required. Because of this, people who have houses close to these shelters will see a decline in their property’s value.
In the words of James Truslow Adams on his phrase The American Dream “ A dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.” The meritocracy has certainly long been forgotten by the government. California is a beautiful state, but the higher the taxes, the more difficult it will be for everyone living in it.
As Democrats continue to increase taxes, the mass exodus from the state continues. People from a range of social and economic backgrounds are leaving the state for others such as Florida, Texas, Tennessee, and Arizona. For the wealthiest Californians, it certainly wouldn’t be a problem to relocate, just as the evidence shows in New York City, where many wealthy Upper East Siders are leaving the city for safer, cleaner, and above all, tax-friendly places.
Photo sourced from TeaParty911