So many issues with the whole thing. Art collections, for example. I read that only 35% to 40% of art lots offered by Sotheby's sell strictly within their pre-auction low-to-high estimates. Are they allowed to object to the valuations? And why should anyone be forced to allow strangers to randomly walk through their private residence.
And as you say, businesses. Not only is a private business difficult to value, there are also public start-ups that have a high value on paper but not in the 'cash' world. Some of these stocks cannot even be sold due to holding restrictions.
And why the $1 billion starting point. Someone worth $980 million isn't well off?
And as you say, what's to keep the state from coming back in several years with a new tax. I can understand why some might decide to leave the state. Especially considering the retroactive clawback, which targets anyone who held primary residency in California as of January 1, 2026. What's to keep them from doing this again as well. Pick a date.
Changes need to be made at the federal IRS level to tax these people more, eliminating loopholes would be a start. This would dramatically increase the California state incomes taxes collected as well.
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