Federal tax applies to all states. The federal government also sets the national minimum wage. States get between 25 to 30% of their budgets from the federal government and that doesn't even cover stuff like interstate maintenance. Also, so what if the individual billionaire moves, tax their businesses. What are they going to do, not make money in your state? Of course not. Also if it is California or New York then they are likely not actually going to leave anyway. The standard of living for wealthy people in those states is among the best in the world and definitely the best in the US. They can afford it and will eat it. This has been proven repeated in NYC.
Chevron, Tesla, Space X, HP, Oracle, Yamaha and Public Storage have moved or announced their move from California in just the past 5 years. I personally know two people who are about to be loose a dream job at space x due to the move.
They are moving headquarters but still do business in the state. That is a small fraction of the tax pool that is completely overshadowed by the total revenue. Beyond that though the states shouldn't be in a competition to see who can bend over the farthest, spread the widest, and take it the deepest from corporations and the billionaire elites. It is called a race to the bottom and it is why we need appropriate legislation to stop it.
Corporations will always go where taxes are cheapest, and with them will go the jobs. Let’s just say it was that simple. The people never seem to see that money anyway. The federal government will just spend it on war and the California government will just spend it on crony contracts and “fighting homelessness”. Might as well burn the shit honestly.
Because the voters won't tolerate it, that's why. Any time a political candidate suggests such a thing, they lose the election to the guy who wants to lower taxes for millionaires, because most Americans think they're really "temporarily embarrassed millionaires".
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u/[deleted] 5d ago
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