Californians with wealth above $1 billion could be taxed an additional 1.5 percent if the latest wealth tax proposal from progressive Democrats is approved.
The proposal would additionally force those who recently moved outside of California to still pay the state’s wealth tax.
CALIFORNIA DEMOCRATS CONSIDER TAX, INCLUDING ON PEOPLE WHO MOVED OUT OF THE PRESIDENT
8VC Managing Partner Joe Lonsdale, a former California resident, joined “Fox & Friends” to share his thoughts on California’s “ridiculous” tax proposal.
“It is fundamentally anti-American. You know, even the French lost a bunch of millionaires and billionaires. You know, it’s really more of a theater production set in California. This is one of the most misgoverned states, isn’t it? 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 is a complete mess. And what they’re doing here is they’re signaling some kind of craziness, and they’re probably going to compromise and tax billionaires more in a different way. But it’s really funny,” Lonsdale said Wednesday.
BUSINESS TAXES ARE GOING UP AS THE US ECONOMY IS INTO SOIL WATER
If passed, the wealth tax could take effect as early as January 2024. By 2026, the threshold for taxation will drop, and those whose assets exceed $50 million will pay a 1% annual wealth tax, while billionaires. will still be taxed at 1.5%.
Co-host Steve Doocy asked Lonsdale about his reasons for moving from California to the Lone Star State, to which he explained that several things went “culturally wrong” in California that drove him away.
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“It’s really hard to build there. Hiring people there is really expensive. You’re basically either a billionaire or a service worker who drives two hours to, you know, work for them. Not a healthy place. raise children,” said Lonsdale.
California’s Silicon Valley, home to several major tech companies such as Google, Apple and Facebook, has also seen a cultural shift. Lonsdale noted that technology development has “spread across the country,” allowing other states, such as Texas, to share in the U.S. technology gains.
THE LIST OF COMPANIES LEAVING IS GROWING BLUE STATE EXIT TREND CONTINUES
“Technology… has spread throughout our country. We can build defense, logistics and biological stuff from many different states. And Texas is a much healthier place to base your business than California these days,” he continued.
“It’s something where you can [find] top tech talent in Silicon Valley. You might even need their help to start something, but you certainly won’t scale it. You certainly aren’t going to build a big business that stays there. As soon as you can, with these kinds of people in charge, you’ll come out somewhere less corrupt,” Lonsdale concluded.
Fox News’ Aaron Kligman contributed to this report.