New York and California consider wealth tax

CNBC’s Robert Frank joins 'Power Lunch' to discuss New York and California considering a wealth tax.

[dyingbatroad]

If you were a business and 40% of your revenue came from 1% of your customers, you'd be very worried about loosing those customers.

[bsd]

Get even more of the wealthy to move out of these states, losing even MORE tax revenue. Pure progressive genius!

[Danner]

Let me get this straight…. People leave NY and California to go to Florida and Texas for cheaper taxes, so NY and California lose tax revenue, and the solution is to raise the taxes even higher on the remaining population? Well, I guess my house in Florida is going to continue to go up in value after this. More people will be flocking down here.

[anonymous_person_smith]

What a brilliant idea. Raise taxes on the people who can afford to relocate.

[srpsbb]

I received a great job offer in Jan 2023, during the process they changed their mind and wanted me to relocate to the bay area which I said no to. Even with the raise, the cost of living increase was substantial. I turned down the job, a month later, they offered the position again and removed the relocation requirement. The hiring manager said, we can not find anyone in area or someone willing to move here. Home prices are ridiculous, traffic is awful, crime, schools, and then factor in taxes, it's not attractive.

[mr_nn]

NY and CA watching their wealthy roll out:
"How did this happen?"

[kenharper]

In other words, if you have a job, own anything, they want it. They will tax you into bankruptcy and then say YOU should manage your money better.

[projoebiochem]

That was an unusually fair discussion for CNBC.

[DAIadvisor]

It's like a store raising prices to compensate for lack of sales.

[carlanderson]

Meanwhile in Texas: In 2023 voters Proposition 3 which added language to the Texas Constitution to prohibit the state legislature from imposing a tax based on the wealth or net worth of an individual or family. In 2019 voters approved Proposition 4 which added language to the Texas Constitution to prohibit the state legislature from adopting a state income tax.

[dr_isk]

“After the fall of communism, everybody in the world agreed that socialism was a failure. Everybody in the world, more or less, agreed that capitalism was a success. And every capitalist country in the world apparently deduced from that what the West needed was more socialism.”
– Milton Friedman

[jimbochoo]

In California, both citizens and undocumented immigrants can get free Medi-cal, free college tuition, free child care, rent subsidies, etc. The list goes on. There's too many billions being allocated for these costly welfare programs. The middle class and wealthier are leaving California and the poor are coming in for these welfare benefits. California will have to raise taxes much higher to support these programs. This type of spending has gotten out of control since the Democrats has completely taken over all levels of state government.

[backcountyrpilot]

The goal is to push the independent people out of the state and retain only the dependent voters, ot those registered to generate a mail-in ballot.

[garlandgranger]

These two states should pass a wealth tax. The will have to define wealth as anyone making $100, 000 or less since all the really wealthy people have left these states. These liberal politicians are proving that there are no boundaries to stupidity.

[jgg]

How about the government start spending the huge amount they already collect the way they are supposed to, instead of on non citizens, other countries, and all the bribes and kickbacks to their donors?

[DeltaEcho]

This is an example of "Trickle-down" taxation. Taxing the super-wealthy won't work because they'll just move, so the burden will meander its way to the middle-class, shrinking its population even further.

[speedsauce]

Apparently there aren't enough people leaving those states already? Taxing people for unrealized gains!?!?!?! WTF

[marsspacex]

They need to cut spending because a wealth tax would be a disaster.

[ddcd]

They will tax them right out of the state. The most mobile group of people in the state will simply move to avoid paying a wealth tax.

[tomconner]

Red states will be happy to have these wealthy individuals as tax refugees .