California lawmakers are proposing an exit tax on wealthy people fleeing California

California has floated proposals to implement an exit tax on wealthy individuals who leave the state. Aimed at high-net-worth individuals, the state wants to ensure it continues to collect revenue from them even after they relocate. Assembly Bill 2088 suggested a 0.4% tax on net worth over $30 million for up to ten years post-move, while Assembly Bill 310 proposed a 1% annual tax on assets exceeding $50 million, with an extra 0.5% on assets over $1 billion. Although these bills have not yet passed, the mere idea underscores the tension between taxation and wealth migration in California.

Sources:

https://finance.yahoo.com/news/leaving-rich-americans-ditching-california-163000441.html
https://scocablog.com/exit-taxes-in-california-not-so-fast/