California’s Proposed Wealth Tax is a Model for America

If you’re rich, there aren’t too many places on earth better than California to live. Sure, there are the perennial earthquakes and wildfires, but those are more than made up for by the Mediterranean climate and the scenic splendor; the Pacific Shore, the High Sierra. And apart from these natural disasters, nothing is wrong with California that money can’t cure.

If you’re a billionaire, then California’s punitive cost-of-living and its failed public schools are of no concern. The moneyed liberal patricians of California, from Tom Steyer to Jack Dorsey, have options. Who cares if your mega-mansion costs $12 million instead of $1.2 million, if you’re a billionaire? Who cares if the local public school is a war zone, if you can easily afford to send your children to the finest private school money can buy?

This is why a recent column in the Los Angeles Times by Nicholas Goldberg, claiming that raising taxes on the wealthy will not drive the wealthy out of California, has some credibility. Goldberg writes:

“Sure, there are lower-tax states where Californians could go. Nevada, Texas, Florida, Alaska, South Dakota, for example. But do we really think many Silicon Valley billionaires — or millionaires — are going to pack up for South Dakota to avoid Miguel Santiago’s income tax surcharge? Do people in Bel-Air or Venice want to move to Dallas?”

Recent events shall put Goldberg’s theory to the test.

California’s overall tax burden is the highest in America, and there’s no […] Read More