California residents whose net worth exceeds $1 billion could pay an additional 1.5% tax if the latest progressive Democrat estate tax passes.
Additionally, the proposal would require those who recently moved out of California to continue paying state estate tax.
CALIFORNIA DEMOCRATS CONSIDER WEALTH TAX, EVEN FOR PEOPLE WHO MOVED OUT OF STATE
8VC Managing Partner Joe Lonsdale is a former California resident and joined “Fox & Friends” to share his thoughts on California’s “ridiculous” tax proposal.
“It’s fundamentally un-American. You know, even the French lost a bunch of millionaires and billionaires. You know, this is really more of a stage production that takes place in California. This is one of the worst-run states out there, right? The top 1% already pay about half the taxes in their most progressive state,” Lonsdale, who recently moved to Texas, explained to co-host Steve Doocy.
“The states, a total disaster. And what they’re doing here is pointing out something crazy, and they’re probably going to compromise and tax billionaires more in some other way. But it’s really ridiculous,” Lonsdale said Wednesday.
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If passed, the wealth tax could take effect as early as January 2024. By 2026, the threshold for paying taxes would be lowered and those with a worldwide net worth of more than $50 million would be hit with an annual tax of 1% on wealth, while billionaires would still be taxed 1.5%.
Co-host Steve Doocy asked Lonsdale about his reason for moving from California to the Lone Star State, to which he explained that there were several things that had gone “culturally wrong” in California that led him to leave.
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“It’s really hard to build there. It’s very expensive to hire people there. You’re basically some kind of billionaire or some kind of service worker who drives two hours, you know, to work for them. It’s not a healthy place to raise kids.” Lonsdale said.
California’s Silicon Valley, which is home to several massive tech companies like Google, Apple, and Facebook, has also undergone a cultural shift. Lonsdale noted that technological development has “spread across the country,” allowing other states like Texas to reap a piece of American technological gains.
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“Technology … has spread across our country. We can build things in defense, logistics and biotech from so many different states. And Texas is a much healthier place to set up your business than California these days,” Lonsdale continued.
“It’s something that maybe [find] Silicon Valley’s top tech talent. You may even need your help to get something started, but you certainly won’t scale it there. You certainly aren’t going to build a great business that stays there. As soon as you can, with these kinds of people in charge, you’re going to go somewhere less corrupt,” Lonsdale concluded.
Fox News’ Aaron Kliegman contributed to this report.