Calif. Dems’ Taxes on Millionaires Could Spell Disaster in Golden State

Facing a massive coronavirus-induced deficit, Democrats in the California legislature are weighing a suite of new taxes on top earners, including a first-of-its-kind wealth tax and the highest top rates in the nation.

California is the most heavily taxed state in the union, but that did not stop legislators from floating an additional $60 billion in taxes by early June—before the wealth tax or income tax hike were proposed. Those latest plans would directly target the wealth of California millionaires, who already pay the lion's share of state taxes.

Assembly Democrats argue that more taxes are needed to stave off the threat of fiscal insolvency brought about by the state’s response to the coronavirus crisis. But California taxpayers and one tax expert tell the Washington Free Beacon that the threatened hikes could drive the state's wealthiest to flee. That would slow the recovery, as they take their wealth and connections with them, and further contribute to the outflow of many of California's most successful businesses.