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California lawmaker pushing for wealth tax: ‘Perhaps rich people can run, but they can’t hide.’ - San Francisco Business Times

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When it comes to the California wealthtax, Assemblymember Alex_Lee told me that the idea that the wealthy are leaving the Golden State is a 'myth.'

California Assemblyman Alex Lee, D-San Jose, made the case Monday for the Golden State adopting a wealth tax.

“In California, while the myth of rich people leaving persists, we literally have members of English royalty moving here, and we haveAsked whether he sees Texas and Florida as desirable destinations for the rich, Lee said: “I think, historically speaking, Washington, Hawaii, California, New York, Maryland, Connecticut have a lot of mega-millionaires and billionaires.”

Critics of the proposed wealth tax worry that it will drive the wealthy making investments and creating jobs out of California. Meanwhile, several Fortune 500 companies have moved their headquarters out of the Bay Area in recent years, including McKesson Corp., Oracle Corp., Charles Schwab Corp. and Tesla Inc. All four moved to Texas.

“Working-class Californians living paycheck-to-paycheck should not pay more in taxes than the wealthiest,” said Assemblymember Ash Kalra, AD-25-San Jose, principal co-author of AB 259 and ACA 3. When I asked Lee Monday about billionaire Tesla founder Elon Musk moving the Tesla headquarters and himself to Texas, Lee said: “If someone were to leave simply to avoid taxation, like say Elon Musk, there’s still this phasing out portion, where for four years following their exit, they still are paying a taxation or wealth tax.

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