Former California resident slams 'ridiculous' wealth tax proposal

Former California resident slams 'ridiculous' wealth tax proposal

If the latest wealth tax push of the progressive Democrats gets approved, California residents with net worth greater than $1 billion could be taxed an additional 1.5%.

The proposal would force those who recently moved out of California to still pay the state's wealth tax.

The Managing Partner of 8 VC Joe Lonsdale is a former California resident and joined Fox Friends to share his thoughts on California's ridiculous tax proposal.

It is fundamentally un-American. Even the French lost a lot of millionaires and billionaires. This is a theatrical production going on in California. This is one of the most mismanaged states in the world, right? The top 1% already pay half of the taxes in their most progressive state, said Steve Doocy, co-host of the show, Lonsdale, who recently moved to Texas.

The states are a total mess. They're signaling something crazy, and they're probably going to compromise and tax the billionaires in some other way. Lonsdale said Wednesday that it's really ridiculous.

If passed, the wealth tax could take effect as early as January 2024. By 2026, the threshold for being taxed would drop, and those with a net worth exceeding $50 million would be hit with a 1% annual tax on wealth, while billionaires would still be taxed 1.5%.

Steve Doocy asked Lonsdale if he moved from California to the Lone Star State, he said there were several things that went culturally wrong in California that drove him out.

You're basically a form of billionaire or some kind of service worker who's driving two hours to work for them. Lonsdale said that it was not a healthy place to raise kids.

California's Silicon Valley is home to several tech companies like Google, Apple, and Facebook, and has seen a cultural shift. Lonsdale pointed out that technology development has spread throughout the country, allowing other states like Texas to get a piece of the U.S. technology profits.

Technology has spread throughout the country. We can build things in defense and logistics and bio from so many different states. Lonsdale continued that Texas is a much healthier place to base your business in California.

You might need their help to start something, but you're certainly not going to scale it there. Lonsdale concluded that you're going to get out somewhere less corrupt as soon as you can, with these kinds of people in charge.