Matt Mahan

That's a loophole.

We should close that.

Actually, I'll give you one more.

Elon Musk, if he were to die today, would pass his stock onto his heirs, $500 billion or whatever it is, and it would automatically get repriced at market rate, meaning even if they turned around and sold it the next day, would never pay capital gains on it.

fundamentally unfair.

So there are a whole bunch of things in the tax code I would fix.

I also think with automation, capital gains will probably need to go up so that we can lower income tax on those who are working for a living.

But when it comes to this wealth tax, the concern I have is it's going to punish the middle class in California.

We've seen about a trillion dollars of capital flight from the state already.

And this is right in line with what we've seen in every other place that's tried a wealth tax.

Not taxation.

Correct.

A trillion dollars worth of wealth, of assets that people hold that no longer reside within the state of California because their owner now has a primary residence in another state.

Like Reno or something.

Yeah, yeah.

Nevada, Florida, Texas, whatever.

And that's what we've seen.

So there are 14 European countries that have tried wealth taxes at the national level, not even the provincial or state level.

And they have generally rolled them back or had to significantly modify them for a couple of reasons.

One, they have seen the overall tax base shrink because they've had capital flight.