California already taxes high earners more than any other state. I think the idea that a further wealth tax (which I wholeheartedly support) would be more easily avoidable at the state level.
I have no doubt Newsom is speaking from both sides of his mouth on a difficult political problem for him, but all else being equal a federal wealth tax is a better idea than a state one.
In theory a federal one is better but it’s unrealistic. It’s going to be hard enough getting a state wealth tax passed, it’s essentially impossible to get a federal one passed. For that to happen you’d need to give Democrats complete control of both houses of Congress and the presidency, and even then it would be a struggle. With Republicans in control of anything it’s a complete pipe dream. So rather than going for the perfect solution that isn’t going to happen anytime soon it’s better to go for the imperfect one that has a good chance of actually happening.
California already taxes high earners more than any other state. I think the idea that a further wealth tax (which I wholeheartedly support) would be more easily avoidable at the state level.
I have no doubt Newsom is speaking from both sides of his mouth on a difficult political problem for him, but all else being equal a federal wealth tax is a better idea than a state one.
In theory a federal one is better but it’s unrealistic. It’s going to be hard enough getting a state wealth tax passed, it’s essentially impossible to get a federal one passed. For that to happen you’d need to give Democrats complete control of both houses of Congress and the presidency, and even then it would be a struggle. With Republicans in control of anything it’s a complete pipe dream. So rather than going for the perfect solution that isn’t going to happen anytime soon it’s better to go for the imperfect one that has a good chance of actually happening.
Hell, even with both houses and the president there still SCOTUS to deal with.