A California democratic socialist has been slammed for pushing a wealth tax that could even apply to those who choose to leave the state.
The Orange County Register accused Bay Area assemblyman Alex Lee of trying to turn California into East Berlin under Soviet communist control with the bill, which called for the state’s richest residents to face a wealth tax.
The lawmaker proposed a one percent yearly tax rate on individuals with a net worth of more than $50million, and a 1.5 percent rate on Californians with a net worth of over $1billion.
In a fiery op-ed titled ‘California is not East Berlin. A wealth tax in California would expedite the exodus,’ the local paper slammed the democratic socialist’s proposal.
‘The problems with the wealth tax proposal – even as half-baked as it is – are legion. But one issue should be especially troubling to anyone who believes both in fiscal restraint and basic constitutional freedoms,’ wrote columnist Jon Coupal.
The Orange County Register State called out Bay Area assemblyman Alex Lee introduced a bill calling for the state’s richest residents to face a wealth tax
Columnist Jon Coupal wrote: ‘California is not East Berlin. The U.S. Constitution will not allow the state government to build a wall to keep citizens in, and then shoot tax bills at them when they try to escape.’ East Berlin seen above in 1963 under Soviet communist’s rule
Coupal then notes the bill includes a provision that applies the wealth tax to every ‘wealth-tax resident,’ which is defined as someone who ‘is no longer a resident, and does not have the reasonable expectation to return to the state.’
By forcing those who no longer have links to California to continue to pay the tax, the bill could thus violate the U.S. Constitution’s Commerce Clause and could represent ‘an impairment to the right to travel.’
Coupal concluded: ‘California is not East Berlin. The U.S. Constitution will not allow the state government to build a wall to keep citizens in, and then shoot tax bills at them when they try to escape.’
Lee’s bill has already died after being heard by the state’s Assembly Revenue and Taxation Committee on Wednesday. Both Democrats and Republicans opposed the proposal, as does Governor Gavin Newsom.
The socialist defended the bill after it was rejected by the committee.
‘The wealth tax is a common sense proposal that’s a drop in the bucket for the ultra-rich. It would affect less than 0.1 percent of people — those who enjoy the most extreme wealth in our society. Despite the outcome of AB 259, I’m committed to creating a more equitable system, and protecting our working class families.’
California’s economy is so big that if it were a country, it would be the fifth largest in the world.
But the state’s budget is notoriously volatile. Just 1 percent of California’s total tax returns — about 180,000 — accounted for half of the state’s income tax revenue in 2021.
California already taxes the wealthy more than most states, with the top 1 percent of earners accounting for about half of the state’s income tax collections.
According to Forbes’ 2022 World’s Billionaires list, there are 186 billionaires living in California, down from 189 the year before, but far more than any other state.
In 2020, California had the greatest number of millionaire households in the US, with 1.14 million households having one million or more in investible assets.
Last year, Lee also tried and failed to pass a wealth tax.
Lee, who is openly bisexual, represents California’s 24th Assembly District, which includes the Alameda County communities of Fremont, Newark, and Sunol, and the Santa Clara County Communities of Milpitas and San Jose.
He was elected in 2020.
Previously, he worked on statewide policy regarding public safety, climate change, and education for California State Senator Henry Stern and Assembly member Evan Low.