California

California, with a population of 40 million, about 14 million personal income tax returns were filed. The top one percent (140,000) paid half the taxes while the bottom 20% received money back even though they paid in zero because of various tax credits. There is now a proposal for a 5% wealth tax on all whose net worth is over one billion dollars. This represents about 200 people and would bring in about $25 billion. This is a onetime tax to offset part of the expected budget deficit. California has experienced a dramatic swing from massive surpluses (peaking around $97 billion in 2022) to significant budget deficits, with figures like $45 billion (2024-25 proposal) This does not include the long-term debt of $1.6 trillion because of unfunded pensions and healthcare promises. California has the highest state income tax (14.4%) in the country and many high earning professionals and tech figures are leaving and moving to states like Texas and Florida where there is no state income tax. As more wealthy people leave the state, they are being replaced illegal migrants who have very few assets and now number 2.6 million.