hotair.com I’ve been writing about this California Wealth tax proposal for a couple weeks now and I really thought I’d done justice to what a completely awful idea it is. Yesterday, for instance, I pointed out that this proposal is going so badly that Gov. Newsom is now making the media rounds to say ‘I told you so’ (almost literally). That comes after three of the state’s five richest billionaires have indicated they plan to leave the state to avoid the tax.
Today I learned that the tax is actually much worse than I thought it was. You see, I thought this was a 5% wealth tax. So the state would tally up everything you own and then just demand 5% of that total amount, including unrealized gains like ownership of stock you hadn’t sold.
But it turns out there’s a clause in the proposed law which makes things even worse. The site Pirate Wires has an explainer conveying how this works and why it could be the “kill switch” for California’s tech industry.
Late last year, the architects of California’s “Billionaire Wealth Tax” ballot proposition quietly amended language in their proposal which, if successful, would permanently end the concept of founder-controlled startups in the state — a technology industry kill switch…
Per the late November amendment:
“(C) For any interests that confer voting or other direct control rights, the percentage of the business entity owned by the taxpayer shall be presumed to be not less than the taxpayer’s percentage of the overall voting or other direct control rights.”
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Read Full Article Here…(hotair.com)
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