Crush Liberalism

California tries to destroy its economy once and for all

The Eagles were ahead of their time with Hotel California.  “You can check out any time you like, but you can never leave!”  From TaxProf:

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.

Let that sink in for a moment: you are incredibly successful, living in CA, and one day you’ve decided that you’re tired of being taxed through the teeth to fund the deadbeats living off the public teat in Californiastan.  So, you do what got you rich in the first place (hint: it’s not marrying a ketchup heiress): you use your noggin.  Economic literacy tells you that it makes better sense to move to less tax-oppressive states that don’t want to punish you for being successful.  CA’s response?  “How dare you!  We’ll tax you through the nose on your way out!”

Until the people of Californiastan get their collective heads out of their Marxist backsides, they will continue their seemingly unstoppable slide into bankruptcy.  And I, for one, will laugh myself sore when it happens.

August 27, 2008 - Posted by crushliberalism | big government, California, economic ignorance, socialism, taxes