However that is problematic as well, as California is a “throwback state,” the Tax Foundation reports. Berkeley’s Hastings Law School Scoca Blog reports that the exit tax violates the right to travel, violates the federal Commerce clause, and Due Process clauses. And, a “wealth tax” is a secondary tax on wealth already taxed at the point of acquisition, consumption, or on income already made. The reason a wealth tax ends up not impacting the wealthy is because it gets passed down to the consumers. In 2020, Democrats proposed an exit wealth tax, AB 2088, and one which would follow any and all businesses leaving California for greener economic pastures.

Source: Los Angeles Times May 01, 2024 17:27 UTC