It’s almost comical that California – cheered on by progressive “soak the rich” groups – now wants to impose a 1% annual wealth tax on the state’s gazillionaires. Under this new tax scheme, the top 0.1% of residents will bear 100% of the tax. It’s the ultimate free lunch for 999 out of every 1,000 Golden State Residents.
But what if these 14,000 or so multimillionaires and billionaires just call it quits on California – as the most recent Census data confirms is already happening?
The California Business Roundtable ran the numbers. No state is more reliant on the rich to pay for government services than California.
The top 1% of Californians pay almost half (45% of all income tax).
The top 0.1% pay more than one-quarter of the income tax.
The percentage growth of the millionaire class over the past decade grew more slowly in California than in virtually all of its neighboring states, including Idaho, Utah, Montana, Washington, Nevada, and Arizona. Some of those millionaires are transplants from the Golden State.
Be careful California: if more of those Hollywood and Silicon Valley millionaires cash out and look for greener – or should we say, redder pastures – Sacramento is going to have the biggest budget deficit in the history of the United States.