Not Again: Zombie Wealth Tax Bill Returns
Like a zombie from a B-grade horror movie, it appears legislation to chase away jobs and investment by raising taxes on high-income earners is poised to return this year. Apparently, the demise of similar legislation last year that the Bay Area Council vehemently opposed and the bludgeoning voters gave to a tax-the-wealthy ballot proposition in November didn’t send a loud-enough message about how little appetite there is for these kinds of foolish measures.
Assemblymember Alex Lee (D-San Jose), who authored last year’s bill, is again behind this misguided bill package consisting of AB 259 and ACA 3. Both measures must be approved by a 2/3rds vote of the Legislature, with ACA 3 then being sent to California voters to vote on.
California already has the nation’s highest taxes, a dubious distinction that has encouraged numerous high-wealth individuals to flee the state in recent years, along with the investment and jobs they create. Not only that, but their departure has contributed to California’s $22.5 billion budget deficit, given that the state has an outsized reliance on high-income earners for tax revenue. The Council will be doing everything in its power to dispatch this zombie. To engage in the Council’s government relations work, please contact Director of State Government Relations Alex Torres.