California Activist Proposes a Tax Plan Only a Communist Could Love

California is in trouble. High taxes are driving businesses and individuals out of the state and making California much less attractive for future business start-ups. The California legislature's answer to their budget problems never include program cuts, just more "revenue".

So, how do we fix the problem? We impose punitive additional taxes on anybody who has anything at all, and even punish them further if they try to leave the state:

A California activist is trying to gather the 694,354 signatures needed to place a tax initiative on the ballot that would:

-Impose a new 35% income surtax (in addition to federal taxes and the existing 10.3% top state rate) -- 17.5% (on all of the taxpayer's income) when income exceeds $150,000 (single)/$250,000 (joint), and an additional 17.5% (again, on all of the taxpayer's income) when income exceeds $350,000 (single)/$500,000 (joint).

-Impose a one-time 55% wealth tax on assets exceeding $20 million held by a California resident or held in California by nonresident.

-Impose an exit tax of between 36.5% to 54.3% on both income and unrealized appreciation in asset values over $5 million when a resident dies or leaves California.

Sadly, this guy will probably get the signatures he needs because it's become a very popular mantra to "tax the rich". Because it only takes a majority of voters to pass it, and the vast majority of voters wouldn't be affected by this, I fear something like this could actually pass. Of course, when this is done, there's won't be any rich people in California left to tax.

Leaving California is becoming more and more attractive.