California’s residents whose net worth is greater than $1 billion could be taxed an additional 1.5% if progressive Democrats’ latest wealth tax push gets approved.
The proposal would additionally force those who recently moved out of California to still pay the state’s wealth tax.
CALIFORNIA DEMOCRATS CONSIDER WEALTH TAX — INCLUDING FOR PEOPLE WHO MOVED OUT OF STATE
Managing partner of 8VC Joe Lonsdale, a former California resident, joined “Fox & Friends” to share his thoughts on California’s “ridiculous” tax proposal.
“It’s fundamentally un-American. You know, even the French lost a bunch of millionaires and billionaires. You know, this is really more of a theatrical production going on in California. This is one of the most mismanaged states there is, right? The top 1% already pay about half the taxes in their most progressive state,” Lonsdale, who recently moved to Texas, explained to co-host Steve Doocy.
“The state’s a total mess. And what they’re doing here is they’re signaling something crazy, and they’re probably going to compromise and tax the billionaires more in some other way. But it’s really ridiculous,” Lonsdale said Wednesday.
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If passed, the wealth tax could take effect as early as January 2024. By 2026, the threshold for being taxed would drop, and those with a worldwide net worth exceeding $50 million would be hit with a 1% annual tax on wealth, while billionaires would still be taxed 1.5%.
Co-host Steve Doocy asked Lonsdale about his reasoning for moving from California to the Lone Star State, to which he explained that there were several things that have gone “culturally wrong” in California that drove him out.
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“It’s really hard to build there. It’s really expensive to hire people there. You’re basically either some form of a billionaire or some form of service worker who’s driving two hours, you know, to work for them. Not a healthy place to raise kids,” Lonsdale said.
California’s Silicon Valley, which is home to several massive technology companies like Google, Apple, and Facebook, has also seen a cultural shift. Lonsdale noted that technology development has “spread throughout the country,” allowing other states like Texas to get a piece of US technology profits.
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“Technology… has spread all throughout our country. We can build things in defense and logistics and bio from so many different states. And Texas is a much healthier place to base your business in California these days,” he continued.
“It’s something where you maybe [find] the best technology talents in Silicon Valley. You might even need their help to start something, but you’re certainly not going to scale it there. You’re certainly not going to build a big business that stays there. As soon as you can, with these kinds of people in charge, you’re going to get out somewhere less corrupt,” Lonsdale concluded.
Fox News’ Aaron Kliegman contributed to this report.