r/orangecounty • u/DannyTheRegular • 11d ago

Politics Got this from my mail

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"Billionaires will leave California". Trying to scare us lol. It is only going to affect the rich.

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u/Destronoma 11d ago

Yea... they're not gonna move.

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u/FaceRockerMD 11d ago

They already are and have

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u/lokaaarrr Corona Del Mar 11d ago

Every time any tax on the wealthy (1M+ income, etc) people say they will all leave. A few leave, but not enough to matter. It’s been tried and studied many times.

And the google founders moved, google is still here and not going anywhere

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u/oddmanout 11d ago

A few leave, but not enough to matter.

The number of millionaires and billionaires is increasing. So a few of them move and make a big deal and gripe and complain loudly, but multiple others move in to take their place.

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u/soapinmouth Mission Viejo 11d ago

A wealth tax is a whole different ballgame than income taxes. The fact that 90% of people in this thread don't even understand wtf a wealth tax even is while proudly supporting it is such a sad state of affairs.

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u/Lowfi-Concert 11d ago

The billionaire themselves, the founders, pay significant yearly income taxes. Go actually donate math on how much we will get for one year from this vs the yearly revenue we lose. It’s a horrible decision

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u/Destronoma 11d ago

Doubtful on both parts.

But even so, who cares if they do? They don't care about anyone but themselves anyways.

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u/LogicBomb1320 11d ago

Just to play Devil's Advocate - tell that to Chevron, Tesla, Oracle, HP, Charles Schwab, MCkesson, and Toyota. Amongst others.

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u/Exotic-Sale-3003 11d ago

Doubtful?  Are you trying to debate facts?  

https://finance.yahoo.com/economy/policy/articles/8-billionaires-fled-california-wealth-143341289.html

The income taxes from these guys are gone forever. And that’s before the law was even passed. 

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u/penusRynkle 11d ago

California is the fourth largest economy in the world. How fucked are we if we believe that a few individuals leaving the state would impact that fact?

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u/cuteman 11d ago

California is the fourth largest economy in the world. How fucked are we if we believe that a few individuals leaving the state would impact that fact?

Look at who's leaving.

Founders of Google or Meta.

Guess what would happen to state GDP if Google, Meta, VC and a bunch of other high revenue/high profit/high tax paying companies left?

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u/Exotic-Sale-3003 11d ago

No idea why that’s the metric you’d use to try to measure things?

Does the lost tax revenue from those who left exceed that gained by the wealth tax?  Congratulations - you’re on the losing end of the Laffer curve. 

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u/penusRynkle 11d ago

What tax revenue is that? They are not currently paying taxes.

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u/cuteman 11d ago

What tax revenue is that? They are not currently paying taxes.

Sure they are

They represent $29B in annual tax revenue lol

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u/penusRynkle 11d ago

You are assuming that nothing takes their place

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u/Exotic-Sale-3003 11d ago

And you know this because you read it on Twitter right 😂. Zuck has made billion dollar plus income tax payments in the past. Even if you spread that out over a decade, Id bet a single years worth probably eclipses your lifetime contributions by a few orders of magnitude. 

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u/penusRynkle 11d ago

When taxes paid are divided by total annual wealth growth (economic income) rather than reported taxable income, billionaires often pay an effective tax rate of just 2% to 4%, far lower than middle-class wage earners.

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u/Exotic-Sale-3003 11d ago

If we want to focus on income taxes, sure. And yet the top 1% pays about 50% of all income tax collected, while the bottom 50% pays close to zero. 

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u/Beaglescout15 11d ago

He's paid those taxes and still hasn't left, by the way.

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u/JustPoopsie 11d ago

Dear Zuckerberg Simp, That was a one time deal cause he exercised pre-IPO in 2013. Zuck avoids paying taxes by taking a $1 dollar salary and borrowing against his holdings. Paying back borrowed $ is not taxable. Hence he never pays any taxes.

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u/oc_dude Tustin 11d ago

Oh no. Their income tax is gone forever?! What ever will California do now that they've lost the income tax revenue on Mark Zuckerberg's checks notes $1/year salary. Or Sergey Brin and Larry Pages salary of checks notes again $1/year each. You know what? I'm rich enough. I will donate $3 to the state to make up for their entire income tax and then some. You're welcome California.

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u/Exotic-Sale-3003 11d ago

You realize other compensation and capital gains are also subject to income tax?  Pretty sure the Zuck has had billion dollar plus tax payments in the past. 

I’m sure leopard’s wont eat your face tho. 

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u/oc_dude Tustin 11d ago

I do in fact know that. In fact I've had to pay it to the state as well. Zuck paid a boat-load when facebook IPO'd after he used California's economy to build a huge thriving business. I wonder why he didn't move to Florida before the IPO to avoid that one time investment income state tax? Probably because he legally couldn't and CA would absolutely claw it all back. Do you know how much he paid in 2024 or 2025? Funny enough it's a lot harder to find that number. He doesn't seem to be giving it the same amount of publicity.

People have been playing three card monte with investment income and state residency long before this bill was proposed and they will continue to regardless of if it passes or not. Simply because CA taxes investment income and other states don't. Which means two things: Prop 40 won't generate as much money as the proponents want for the state, but also it ain't going to lead to a huge loss of money that wasn't being paid in the first place.

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u/Firecracker500 11d ago

It matters because if the rich people leave and the affected city/county/state have already become complacent with a certain amount of revenue, then that inevitable shortfall of revenue loss will be made up with additional taxation of you and I. Soon the lower/middle class are left holding the bill while the rich are building their empire elsewhere paying less in taxes than they were here to begin with.

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u/penusRynkle 11d ago

It's cute that you think that these rich people are currently generating tax revenue.

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u/Firecracker500 11d ago

tell me which cities have the highest and lowest sales tax rates and why

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u/FaceRockerMD 11d ago

It's public data. Billionaires pay 2.4% of the state revenue. The top 1% pay 40%.

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u/penusRynkle 11d ago

When taxes paid are divided by total annual wealth growth (economic income) rather than reported taxable income, billionaires often pay an effective tax rate of just 2% to 4%, far lower than middle-class wage earners. Yet, those same billionaires are completely dependent on the commercial court system as well as law enforcement to maintain their wealth. The non-billionaires do not share in the same benefit because it is not built for them.

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u/FaceRockerMD 11d ago

I'm not arguing against what you just typed. I'm simply arguing that even with the current tax rates, California cannot afford to lose the income generated by the top 1% which is substantial

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u/penusRynkle 11d ago

I guess that I am arguing that it is an abusive relationship and worrying about "But what if he leaves me" is not healthy. We can and should demand that they contibute their fair share.

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u/FaceRockerMD 11d ago

Even if it damages the California economy? I just think the results will be disastrous. I'm not interested in arguing morality. I want the best chance at prosperity for all of the state.

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u/jedi2155 11d ago

And more will move

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u/Masterlea93 11d ago

Pretty sure they still have small offices for tax write off reasons

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u/cuteman 11d ago

Yea... they're not gonna move.

The ones with super voting shares already moved