LOS ANGELES (AP) — A proposed billionaires’ tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while Democratic Gov. Gavin Newsom maneuvers to defeat a levy that he fears will lead to an exodus of wealth.
A technology mecca, California has more billionaires than any other state — a few hundred, by some estimates. Nearly half its personal income tax revenue, a financial backbone in the nearly $350 billion budget, comes from the top 1% of earners.
A large health care union is attempting to place a proposal before voters in November that would impose a one-time 5% tax on the assets of billionaires — including stocks, art, businesses, collectibles and intellectual property — to backfill federal funding cuts to health services for lower-income people that were signed by President Donald Trump last year.
In a state with a vast gap between rich and poor, the plan has resulted in a tangle of competing interests at a time when both Democrats and Republicans are struggling to respond to economic anxiety driven by rising costs ahead of this year’s midterm elections.
Newsom is campaigning for the presidency, to the donors. Same as Hillary and Biden and Kamala. Maybe we need a candidate that plays to voters this time.
Pathetically the sheep consider Biden’s presidency a great success. What do you even say to that?
If Newsom doesn’t take a more progressive stance I won’t vote for him. I’m through voting for liberals that lie to your face then do the bidding of the billionaire class behind closed doors. That’s exactly why nobody trusts the Democrat party anymore. I’m a lifelong Dem voter, but enough is enough. Never again. If you’re pro-Israel or pro-billionaire, count me out.
They won’t leave, that’s where the talent is. Fuck you Newsom, back the bill.
They are doing everyone a favor if they leave anyway. They make everywhere they are worse off influencing politics. They are surrounded by yes men and think they are smarter than everyone else, and more capable, by virtue of having all of that money.
It ought to be framed as “we want them to leave. The whole purpose of the tax is to get them to leave.” The state would be better off without them. They are net negatives. They use massive amounts of resources and give nothing back. Pile all of them on Texas and see how that goes.
So “nearly half” of California’s income tax revenue comes from the top 1% of earners, and “a few hundred” billionaires would be subject to this one-time tax.
There are approximately 20 million workers in California, so the top 1% of earners is about 200,000 people.
Even with a high end estimate, roughly 195,500 of the top 1% of earners will not be subject to this one-time tax. This bill only targets the top 0.0025% of earners in California. One four-hundredth of the top one percent.
It’s all the proof one should need to see that he’s on their side, not mine, not yours.
Lesser evil btw
Dems will cave on this.
Newsom has more important priorities, like figuring out new and terrifying ways to criminalize and punish homelessness.
Disagree.
Protecting billionaires is his top priority.
