The Culture War - Tim Pool - California Wealth Tax BACKFIRES, Triggers COLLAPSE And EXODUS From State

00:00:00.000 Ever feel like car shopping is designed to make you second-guess yourself?

00:00:03.760 Is this a good price?

00:00:05.100 Am I making the right choice?

00:00:06.880 With CarGurus, you don't have to wonder.

00:00:08.960 You get deal ratings, price history, and dealer reviews without the surprises,

00:00:13.980 so you can shop with confidence.

00:00:15.760 Buy your next car today with CarGurus at cargurus.ca.

00:00:20.000 Go to cargurus.ca to make sure your big deal is the best deal.

00:00:24.400 That's C-A-R-G-U-R-U-S dot C-A. 1.00

00:00:28.260 Cargurus dot C-A.

00:00:29.620 The 2026 Maverick with Ford Flex Bed Storage System.

00:00:33.700 For those that see more than a stack of lumber.

00:00:36.560 More than four empty walls.

00:00:39.640 More than just a blank page.

00:00:43.000 The Ford Maverick.

00:00:44.340 Made to fit, designed to flex.

00:00:46.980 Right now, get purchase financing from 4.99% APR for up to 72 months on all 2026 Maverick models.

00:00:54.100 Visit your Toronto area Ford store or Ford.ca today.

00:00:59.620 Another day, another California Democrats pass bill that damages the state and causes people to leave.

00:01:06.980 I remember doing a story several years ago about how bubonic plague actually had reemerged in Los Angeles because the homeless crisis was so bad, people were living in disgusting filth and squalor.

00:01:20.360 People actually got bubonic plague.

00:01:23.080 It's kind of crazy.

00:01:23.960 You'd think it'd be gone, but it's not.

00:01:25.880 Another big issue is this.

00:01:27.600 California just passed their wealth tax.

00:01:30.140 And now we are seeing moneyed individuals leave.

00:01:33.280 And they are already projecting, I kid you not, a budget shortfall.

00:01:38.520 For those that aren't familiar, a wealth tax is taxing unrealized gains, which, let me break it down for you.

00:01:45.840 If you own a thing and someone else believes it's worth money, you now owe the government.

00:01:53.000 A simple way to put it is, if you bought a Pokemon card for $50, and then next year a website says that card is worth $500,

00:02:03.640 then the government says, you just made $450 of wealth, and we are taxing that wealth.

00:02:11.520 The only problem is you don't have any money.

00:02:14.260 You just have a Pokemon card.

00:02:16.440 So how do you actually pay it?

00:02:18.700 You got to sell it off.

00:02:20.120 This works very similarly to property taxes, which many people have pointed out.

00:02:24.560 Over the long run, results in legacy landowners having to sell off their land, break it up piece by piece to cover taxes on something.

00:02:33.640 That doesn't actually generate money for them.

00:02:36.880 And thus, powerful individuals are leaving the state.

00:02:40.380 That's going to trigger a budget shortfall.

00:02:42.780 I don't know what California thinks it's going to do, but this, my friends, is why taxation is not so simple.

00:02:50.180 So I'm going to break all of this down for you, and I'd love to introduce you to something called the Laffer Curve.

00:02:55.940 This is the idea that if you increase taxes, you decrease tax revenue.

00:03:02.300 But see, as many of these Democrats don't know or care, they simply say, listen, I want to get elected.

00:03:08.260 I'm going to tell the people what they want to hear.

00:03:09.720 If you tax people, you make money.

00:03:11.140 If you try to explain to the general public the Laffer Curve, many of these people are going to be like, dude, I don't even know what you're talking about, man.

00:03:17.580 Just take their money from them and give it to me.

00:03:19.620 And you're going to be like, listen, they'll just leave.

00:03:21.480 I can't do that.

00:03:22.280 They'll say, what?

00:03:22.820 California tried at one point passing a law to tax individuals who had lived in the state within the last 10 years.

00:03:31.440 That's right.

00:03:32.220 You move out of California, you're broke.

00:03:34.720 You move to Florida, get a job, make money, and California goes, you owe us.

00:03:39.840 And you're like, what?

00:03:40.300 I don't live there.

00:03:41.000 They tried this.

00:03:41.740 I kid you not.

00:03:43.100 They tried doing that because they know increasing these taxes will result in the exodus.

00:03:49.540 Welcome, my friends, to the failure that is California.

00:03:51.860 But let's talk about this.

00:03:53.760 And I got to warn you, they say that what happens in California happens to the rest of the country five years later.

00:04:00.280 Will we hold off?

00:04:02.140 I'm not entirely sure.

00:04:04.140 The LA Times breaking down the billionaire tax and the exodus.

00:04:07.280 Before we get into all that, my friends, make sure you subscribe to this channel.

00:04:11.200 Share this video if you do support the work that I do everywhere you can.

00:04:14.780 It really does help.

00:04:15.920 If everybody who watched this video shared it, it would be the biggest, the biggest news show every day,

00:04:21.360 4 p.m., YouTube.com slash TimCast and on Rumble.

00:04:25.300 Also, don't forget to go to CastBrew.com and pick up some CastBrew coffee.

00:04:29.920 Dr. Alex Stein's Big Booty Latina Love Potion now available.

00:04:33.560 Alex Stein is not a doctor.

00:04:35.660 It's a medium roast.

00:04:36.940 It's delicious, but it's largely our Valentine's Day gag product.

00:04:40.200 It's funny if you're a fan of Alex Stein or like the show.

00:04:42.620 Grab it while you can.

00:04:43.880 Not that much in stock.

00:04:44.980 We just thought it'd be funny to do.

00:04:46.400 Available at CastBrew.com.

00:04:47.560 Let's start here, my friends, the backlash.

00:04:51.260 A cryptocurrency company sparks backlash with sudden HQ change.

00:04:55.600 Who in their right mind?

00:04:57.400 Additionally, Mark Zuckerberg also fled the state, but who can blame him?

00:05:01.400 I want to show you this.

00:05:03.820 This is the Citizen X wealth exodus.

00:05:06.700 Let's open this up and zoom in on it so it's easier to see.

00:05:11.040 Mapping U.S. millionaire migration.

00:05:13.320 Inflows and outflows.

00:05:14.820 As we can see, Florida is enjoying a massive influx of millionaires.

00:05:19.380 Property value is going to skyrocket.

00:05:21.140 The state is going to make bank.

00:05:23.400 Now, Florida does not have an income tax, the personal level, but their property taxes are very high.

00:05:29.680 Property taxes are functionally wealth taxes all the same.

00:05:32.460 So it's interesting as to why wealthy people are leaving these places.

00:05:36.920 Well, the truth is, you don't need to be a landowner to live in Florida.

00:05:40.120 You can lease or rent.

00:05:42.220 And if you're making millions of dollars, hey, you're in a good position.

00:05:45.740 You got a comfortable state, good freedom.

00:05:48.160 You got conservative governance, and they're letting you keep your money.

00:05:50.860 And you don't have to be a property owner.

00:05:53.060 So you don't have to see those taxes.

00:05:55.360 The problem with California and the wealth taxes, your wealth is largely coming from your business ownership.

00:06:00.520 And you're not sitting on liquid U.S. dollars.

00:06:04.480 So what happens when you buy a million dollars in stock to store your money in an investment as a wealthy individual?

00:06:09.140 That stock doubles in price.

00:06:10.860 And then California walks over and says, now you owe us money on that. 1.00

00:06:15.080 You're going to be like, I don't have the money.

00:06:17.180 It's in a brokerage account as a stock.

00:06:19.700 I bought a thousand shares.

00:06:21.140 I got a thousand shares.

00:06:22.160 They're going to say, sell it or else.

00:06:24.520 That is what makes no sense.

00:06:27.740 So here's what you see.

00:06:28.340 This is from The Cooldown.

00:06:30.340 They say, a cryptocurrency company has ignited debate after relocating its headquarters out of California due to a proposed wealth tax that some believe will be bad for business in the state.

00:06:39.220 Some believe will literally be.

00:06:41.760 Guys, all you got to do is look up the Laffer curve.

00:06:44.840 There's a story that I've told about a friend.

00:06:46.960 My friend's dad, when I was late teens, you know, I think I was like 19.

00:06:51.640 Contractor.

00:06:52.040 I don't know how it came up, but he was talking about, oh, I remember, Cook County increased their sales tax by like a fraction of a percent.

00:07:01.140 And he said that just nuked tax revenue in the county.

00:07:04.180 And I said, how so?

00:07:05.560 Cook County had a Home Depot.

00:07:07.180 This is the story that I was told.

00:07:07.960 I never actually like researched what closed.

00:07:09.940 Cook County raised their taxes.

00:07:11.880 They had a Home Depot shut down, reopened three miles down the road, costing them tens of millions of dollars. 0.99

00:07:18.320 And I said, that seems stupid. 0.99

00:07:20.320 Why would they do that? 1.00

00:07:21.080 And he says, well, here's the thing.

00:07:23.320 Contractors make massive orders, hundreds of thousands of dollars in materials and lumber through Home Depot, who then delivers it.

00:07:30.280 If you're going to pay an extra fraction of a percent, you could be looking at numbers from $5,000 to $50,000 per year, and you don't want to spend that money.

00:07:39.920 So if there's a Home Depot in Cook County and the taxes go up, the contractors will absolutely order in DuPage even 20 miles away because the drive of 20 miles means literally nothing when you're doing order for millions of dollars in lumber and materials.

00:07:59.160 So Home Depot shut the store down and reopened several miles down the road just to be in a different county because they knew they would lose all of their customers.

00:08:07.300 And guess what happens in the end?

00:08:09.360 Cook County does not get that tax revenue anymore, meaning they raised the taxes and the tax revenue went down because they lost customers.

00:08:19.620 It's kind of obvious.

00:08:21.280 Imagine you have an ice cream shop and you charge $20 for a food of ice cream.

00:08:25.020 Nobody will go there.

00:08:26.340 They will drive an extra 15 minutes if it means their ice cream is going to be $4.

00:08:30.680 Same thing.

00:08:32.120 Cook County has residents, they're customers.

00:08:33.800 They're not going to buy and give you a portion of the revenue.

00:08:37.900 This is what's happening in this cryptocurrency company.

00:08:41.840 They said the move comes as California considers a ballot initiative that would impose a one-time tax 5% on residents worth more than $1 billion.

00:08:51.140 The Billionaire Tax Act is still gathering signatures, but it's already sparked pushback from some business leaders.

00:08:56.720 If approved, it would apply to roughly 200 of the state's wealthiest residents and could raise an estimated $100 billion, much of which would go towards health care.

00:09:07.300 Now, I'm going to tell you this.

00:09:08.280 You're worth $1 billion, and they say we're going to take 5% from you.

00:09:16.400 I'm asking myself, why am I going to give you $50 million, mind you, and I don't even have the cash?

00:09:25.800 That's the problem.

00:09:28.000 You can't.

00:09:29.360 It's impossible.

00:09:30.020 They say if approved it would apply to roughly 200 of the state's wealthiest residents, this mirrors efforts around the world to raise taxes for the ultra-wealthy.

00:09:39.460 BitGo's relocation has drawn attention because the company is preparing for an IPO targeting a valuation of nearly $2 billion.

00:09:45.660 While the filing doesn't state why the company moved, CEO Mike Belshi has criticized the proposed attack, saying who in their right mind would found a new business in California if California does this-ish?

00:09:54.720 Those in favor of the tax say fears of mass exodus are overblown because most billionaires haven't taken steps to leave.

00:10:03.640 Uh-huh.

00:10:04.440 How about this from the New York Times?

00:10:06.460 Move your Picassos, get a divorce, strategies for California billionaires.

00:10:11.040 Yeah, they're absolutely preparing a mass exodus and manipulation of the markets and value.

00:10:17.740 This tax will only hurt regular people.

00:10:22.460 Now, here's what I hear.

00:10:23.280 I hear this from so many of these leftists, but you're not a millionaire billionaire.

00:10:28.240 What do you care for, right?

00:10:30.600 You're not a millionaire or a billionaire, so why do you care?

00:10:34.560 Because inflation.

00:10:36.460 Inflation.

00:10:37.180 You know what's fascinating?

00:10:38.360 A million dollars.

00:10:40.880 What was I watching recently?

00:10:42.500 I can't remember about a movie from the 70s, and it was like rent was like $100 a month.

00:10:48.060 It's been a long time, you know what I mean?

00:10:49.540 It's 2020.

00:10:49.920 It's been 50 years.

00:10:51.940 And rents now are $3,000.

00:10:55.620 So that's a 30x increase in 50 years.

00:10:59.020 30x on rent.

00:11:00.820 Martha listens to her favorite band all the time.

00:11:04.300 In the car, gym, even sleeping.

00:11:09.400 So when they finally went on tour, Martha bundled her flight and hotel on Expedia to see them live.

00:11:14.540 She saved so much, she got her seat close enough to actually see and hear them.

00:11:18.180 Sort of.

00:11:20.740 You were made to scream from the front row.

00:11:23.040 We were made to quietly save you more.

00:11:25.400 Expedia.

00:11:26.220 Made to travel.

00:11:27.780 Savings vary and subject to availability.

00:11:29.580 Yes!

00:11:29.980 Frozen lasagna.

00:11:33.160 Medium power.

00:11:35.700 15 minutes.

00:11:37.940 Sounds like Ojo time.

00:11:40.280 Let's play.

00:11:41.360 Feel the fun with Play Ojo.

00:11:42.620 The online casino with all the latest slots and live casino games.

00:11:45.240 What you win is yours to keep.

00:11:46.560 No wagering requirements, instant payouts, and no minimum withdrawals.

00:11:49.360 Hey, I just won!

00:11:50.760 Woohoo! 1.00

00:11:51.280 Feel the fun with Play Ojo.

00:11:53.580 Honey, forget about lasagna.

00:11:54.860 Let's celebrate.

00:11:55.720 19 plus Ontario only.

00:11:56.580 Please play responsibly.

00:11:57.320 Concerned about your gambling or that of someone close to you?

00:11:58.620 Call 1-866-531-2600 or visit connexontario.ca.

00:12:01.680 So let's just do the math and say, in 50 years, rent will be $90,000.

00:12:07.640 And you're saying, that's insane.

00:12:09.560 $90,000 a month for rent?

00:12:12.560 I kid you not.

00:12:13.900 Let's go back to the 70s when rent was a couple hundred bucks.

00:12:17.800 Not even.

00:12:18.140 Actually, let me make sure I get the numbers right.

00:12:20.180 Let's do the numbers right.

00:12:21.400 How much was average rent in 1970?

00:12:26.140 The average rent was $108.

00:12:30.880 $108.

00:12:32.740 Okay?

00:12:33.640 Let's do this.

00:12:34.600 The average rent today in 2026 is...

00:12:38.160 Okay, to be fair, it's 10x.

00:12:40.080 1,693.

00:12:41.760 I'm thinking in cities.

00:12:42.980 Okay, okay.

00:12:44.200 So it's about a 15, 15 times.

00:12:46.960 Okay.

00:12:48.640 $45,000 per month in 50 years.

00:12:52.140 Per month.

00:12:53.340 Which means, how much money will you have to make per year?

00:12:57.960 If $45,000 is supposed to be a quarter of your rent.

00:13:03.320 Holy smokes.

00:13:05.640 A quarter per month, right?

00:13:07.920 They expect you to be making about a million to two million per year to pay that rent.

00:13:13.020 Okay?

00:13:13.280 And that's in 50 years.

00:13:14.700 The point is this.

00:13:16.100 If you were worth...

00:13:17.180 If you were making $100,000 a year in the 70s, a six-figure income, now 15 times that.

00:13:23.260 15 times that.

00:13:24.560 A millionaire today, if you make $1.5 million per year, it's the equivalent of a six-figure

00:13:30.880 income in 1970.

00:13:32.340 So when they say, we're only taxing the wealthy, yes, but it's insidious.

00:13:38.220 Okay?

00:13:39.100 And I mean, that's slowly creeping and encroaching because these rules don't get changed for inflation.

00:13:45.440 Sooner or later, you will live in a country where people do...

00:13:48.280 Everybody's average...

00:13:49.100 Oh, the average income is $783,000 a year.

00:13:52.960 The average, median.

00:13:54.280 And they're like, I'm broke.

00:13:55.240 I only make $800,000.

00:13:56.420 Imagine today, going to the 1970s and being like, I just can't afford my bills.

00:14:01.440 I only make $60,000 a year.

00:14:03.320 It's crazy, right?

00:14:04.360 But that's the point.

00:14:05.780 When they first introduced income tax back in the day, in the early 1900s, it was like

00:14:09.980 a 3% tax only on the ultra-wealthy.

00:14:12.560 Now it's 30% on everyone.

00:14:15.940 Here's what the New York Times says.

00:14:16.800 At a waterfront resort in Newport Beach, California, a tax lawyer took the stage in a conference

00:14:22.340 room to deliver some advice.

00:14:24.060 A couple hundred wealth advisors had gathered over boneless short ribs and striped bass to

00:14:29.160 learn about a sudden hot topic, a proposed tax on billionaires.

00:14:33.080 Laughter rang out as Mr. Katzenstein, a partner at Holt House Carlin, explained that a married

00:14:38.900 couple worth slightly more than $1 billion would be subject to the tax, but that neither spouse

00:14:43.180 would have to pay it if they split up and divided their assets.

00:14:45.280 Indeed, if they can bring their assets below a billion, they would not be subject to the

00:14:50.700 proposed tax.

00:14:51.520 Otherwise, they're looking for ways to shield much of their wealth as they can.

00:14:55.680 Indeed, my friends, it's not just about the exodus.

00:14:58.280 It's about the fact that they're not going to be subject to this in the first place.

00:15:01.040 Now, don't get me wrong.

00:15:02.100 What, a hundred years from now, people will all be billionaires?

00:15:04.620 Sure, I guess.

00:15:05.240 Maybe.

00:15:05.960 The issue is that they are going to damage their economy, and the end result is, well, I have

00:15:11.040 some sources for you.

00:15:13.540 Where's my, here we go.

00:15:15.620 Little to gain by raising taxes on the rich by the editorial board of the New York Post

00:15:19.600 published this month.

00:15:21.720 You're not going to make money.

00:15:23.540 The Laffer curve.

00:15:24.760 Everyone knows there's a trade-off between the top rate and revenue familiarly known as

00:15:30.880 the Laffer curve, but experts don't agree on how it's shaped, or the current top income

00:15:34.460 tax of 37% is near its apex.

00:15:37.600 Let me tell you about progressive taxes, my friend, and I'll give you my perspective.

00:15:41.440 I'm actually somewhat in favor of progressive tax system to a certain degree, but let me

00:15:45.740 put it like this.

00:15:46.660 I work 16-hour days and a little bit on the weekends.

00:15:52.420 I worked this Sunday on a variety of creative projects, so I work quite a bit.

00:15:56.920 I also have to travel on weekends, so it's rough.

00:15:58.840 When I work these double shifts, the amount of revenue I generate isn't exponential.

00:16:05.360 It's actually a diminishing return, meaning the more I work, the less per hour I make.

00:16:10.900 Unfortunately for me, the more I work, the less per hour I make, and the greater it's

00:16:15.740 taxed.

00:16:16.180 If I were to work only eight-hour days and just cut my workload down, produce substantially

00:16:20.800 less, I would keep a larger percentage of the money that I do make.

00:16:25.460 I would have more free time, and I'd still be rich.

00:16:28.140 Yet for some reason, because of this system, for some reason we have this system, if I work

00:16:35.360 eight hours, let's say I make 100% revenue, I work an additional eight hours, I'm only going

00:16:40.060 to generate 60% of what I'd make, but I'm going to owe a greater amount of taxes because

00:16:44.240 now I'm in a higher tax bracket.

00:16:46.740 So that extra 60% will be taxed at 37, as opposed to the other, the first 100%, which

00:16:51.600 is going to be taxed at like 25.

00:16:53.140 So I'm paying more in taxes, making less, make it make sense.

00:16:58.800 Yogi, House of Yogi on X, he's got the post.

00:17:03.220 Unrealized tax gains for Gen Z. 0.98

00:17:05.100 I do have some corrections for him, but let me explain it.

00:17:07.360 You buy a Pokemon card for 50 bucks.

00:17:10.060 Somebody offers you 500 for it, and you say, no, you love the card, you're keeping it.

00:17:14.320 The government says, hey, that's a $500 card now, you owe us 100 in taxes.

00:17:19.500 But you go, I didn't sell it.

00:17:20.940 Say, we don't care, that's a wealth tax.

00:17:23.840 You have an unrealized gain, that card is worth money.

00:17:27.160 You don't have $100 lying around, so you're forced to sell the card you love just to pay

00:17:31.520 the tax on the money you never received.

00:17:33.260 Next month, the card drops back to 50.

00:17:35.440 Your card is gone, your money is gone, and the government shrugs.

00:17:38.780 Well, here's the reality.

00:17:40.580 In this scenario, you still made $350.

00:17:44.560 You spent 50 on the card.

00:17:46.360 Its value increased by 450.

00:17:48.280 You sold it for 500.

00:17:50.220 Minus your 50 cost, you're at 450 profit.

00:17:52.320 You gave the government $100 in taxes.

00:17:54.420 You cashed out $350, and you say, well, I guess I made money.

00:17:58.720 Here's the thing.

00:18:00.020 Next month, the card goes to $5,000.

00:18:02.060 You go, oh, I knew it.

00:18:04.340 That's the way I bought it.

00:18:05.320 I knew it was going to go up to 5K.

00:18:07.780 And you only made 350 because they forced you to sell it.

00:18:10.820 Now that other guy's got it.

00:18:12.140 Just made a cool 4,000 on it.

00:18:13.960 He's laughing, being like, hey, whatever.

00:18:16.540 Next month, it's $500,000.

00:18:18.900 And you're sitting there being like, I was smart.

00:18:22.680 I invested early, and now it's all gone.

00:18:25.740 Let's read more, and we'll put it into context.

00:18:28.380 That's a wealth tax on unrealized gains.

00:18:30.340 Now picture this.

00:18:31.600 Your mom calls you crying.

00:18:33.280 She has to sell the house she raised you in. 1.00

00:18:34.880 Not because she can't afford it.

00:18:36.440 She's lived there for 30 years.

00:18:37.900 It's paid off.

00:18:39.440 The government says she owes $15,000 she doesn't have because the property value went up.

00:18:45.640 So she sells your home. 1.00

00:18:47.240 The kitchen where she made you breakfast.

00:18:48.800 The door frame where she marked your height.

00:18:50.140 It's gone.

00:18:50.980 To pay a tax on money that was never real.

00:18:53.420 So what happens is this four-bedroom house that she bought for $100,000 all those years ago.

00:18:59.160 Indeed, they did.

00:19:00.920 Paid off paying her taxes.

00:19:03.220 But this is property taxes now.

00:19:06.480 This currently exists.

00:19:07.620 This does happen now.

00:19:10.140 Now the house is worth a million dollars 40 years later, and this happens to a lot of families.

00:19:14.360 And they say, we've reassessed your home, and now you owe us $10,000 in taxes.

00:19:17.520 And she goes, well, I don't make that much.

00:19:19.840 It's not my fault the gentrification happened.

00:19:22.500 Then sell it.

00:19:23.300 So she does.

00:19:24.740 And she makes money. 1.00

00:19:26.020 She does.

00:19:26.980 But you lose your home.

00:19:28.440 And then she has to move into a smaller home because comparable houses are all still a million dollars. 1.00

00:19:33.320 And she can't afford the taxes on a million-dollar home. 0.98

00:19:36.040 So she made a profit.

00:19:37.620 She buys a smaller house in a worse-off place.

00:19:40.040 And that's the cycle.

00:19:41.980 Your dad put everything into his business.

00:19:43.780 For 20 years, he built it from nothing.

00:19:45.880 One year, his business is valued at $2 million on paper.

00:19:49.220 He owes a massive tax bill on that gain.

00:19:50.740 So he empties his savings, sells his truck, borrows money to pay it.

00:19:55.100 Next year, the market crashes.

00:19:56.200 His business is worth $200,000.

00:19:58.000 He lost everything.

00:19:59.400 But I'm going to give it to you in a better way.

00:20:02.240 He's still cashed out, right?

00:20:04.160 Sure.

00:20:05.420 Your dad starts a business.

00:20:07.880 Blood, sweat, and tears.

00:20:09.000 Sleepless nights, 16-hour days.

00:20:11.780 After 20 years, it's now a $10 million business.

00:20:15.660 And he's like, I knew it.

00:20:17.720 He's only making $100,000 a year.

00:20:19.780 They're bringing a lot of revenue.

00:20:20.860 They have a couple locations.

00:20:22.220 But he's getting it.

00:20:23.040 The government says, the value of your company is now $10 million.

00:20:29.080 So you owe us $500,000.

00:20:32.120 And he goes, ugh.

00:20:33.940 So he goes to an investor and says, I can't cover the tax bill on this.

00:20:38.160 It's eating into our revenues.

00:20:40.320 And like it's thin margins as it is.

00:20:42.420 I need someone to buy into the company.

00:20:44.580 So he sells a percentage of the business.

00:20:46.680 Pays the taxes.

00:20:47.440 Next year, same thing happens.

00:20:49.480 So he sells a percentage of the business.

00:20:50.780 Next year, same thing happens.

00:20:52.540 Five years later, as the company grows and the tax bill grows, he only owes a tiny portion

00:20:58.560 of it now.

00:21:00.000 His total net worth has actually diminished over time.

00:21:02.940 The business that he built, he no longer owns for the most part.

00:21:05.920 People are voting against him.

00:21:06.920 And he says, man, I just wanted to make something that I could own and break that barrier and

00:21:11.620 be rich.

00:21:12.320 Capitalism, right?

00:21:13.420 Government said no.

00:21:15.320 The difference is that without this tax, 30 years later, he owns 100% of a business.

00:21:21.760 And he sells it for $50 million.

00:21:24.040 And he pays 15 to 17 million in taxes on that sale, puts a cool 30 million in his pocket

00:21:29.860 and says, kids, we're going on vacation.

00:21:32.380 And when I die, I have an inheritance for you.

00:21:34.940 With the wealth tax, he's shaving away at his business, selling it off, desperate to pay

00:21:38.860 the bills he can't pay.

00:21:41.260 Now, when the businesses ultimately go down, does he get his money back?

00:21:44.400 Does he get his truck back?

00:21:45.280 Does he get the government care?

00:21:45.960 Of course not.

00:21:47.300 So let's apply this to, say, Jeff Bezos.

00:21:50.500 I'm no fan of Jeff Bezos.

00:21:52.640 You know, it is what it is.

00:21:54.540 They say, you owe us on the $100 billion in stock.

00:21:58.180 And he goes, I don't have that money. 0.89

00:21:59.900 Well, if you can't pay it, then you're screwed.

00:22:01.600 So what does he do?

00:22:02.880 He says, OK, I'm going to sell off my stock to pay it.

00:22:06.300 Well, he owes 5%.

00:22:08.300 So he's got to liquidate $50 million.

00:22:10.120 The sale sparks a drop in the stock price.

00:22:13.840 Now he's not worth $100 billion anymore.

00:22:15.320 Now he's worth $70 billion.

00:22:17.960 Lost $30 billion to pay $50 million.

00:22:21.200 The government says, we don't care.

00:22:22.980 So is that worth drops?

00:22:25.100 This is the point.

00:22:25.980 And a lot of people are saying, yeah, but Tim, why do I care about a billionaire?

00:22:28.460 Because the stock isn't just held by the billionaire.

00:22:30.460 It's held by 401ks and retirees.

00:22:32.980 It's held by working class individuals who are trying to put their money somewhere that it

00:22:37.180 could grow.

00:22:38.300 Amazon seemed like a good bet.

00:22:39.620 But because of the wealth tax, the market collapses.

00:22:43.380 This is the short-term thinking of the left.

00:22:45.360 And that's why even Mark Zuckerberg becomes the latest to leave.

00:22:49.400 Congratulations.

00:22:51.100 The revenues are going to decrease.

00:22:55.160 Total revenue maximizing top rate of 39%.

00:22:57.700 Any top rate above 41% reduces revenue because people leave.

00:23:03.460 They stop spending.

00:23:05.280 It's like the sales tax thing I was telling you about.

00:23:06.840 Debate heats up over California wealth taxes.

00:23:10.320 More billionaires are eyeing the exit sign.

00:23:14.160 Washington Democrats are considering a retreat.

00:23:17.500 This is as of today.

00:23:18.780 On the estate tax, fearing a wealth exodus.

00:23:21.820 No, please.

00:23:23.520 I beg of these Democrat states, please, please implement these taxes.

00:23:28.440 You've got to tax the rich.

00:23:29.620 You have to.

00:23:30.540 You know why?

00:23:31.880 Because then these millionaires, these billionaires are going to be like, I'm voting Republican.

00:23:35.280 The Israel thing was really funny, right? 0.99

00:23:37.540 These Democrat billionaires are like, we're voting Democrat and we're going to give them tons of money.

00:23:42.920 And the Democrats went nuts, propped up all this wokeness.

00:23:46.360 And then what happened?

00:23:48.040 Yeah.

00:23:48.840 You get what you get, don't you?

00:23:50.620 You end up with a bunch of anti-Israel politicians at the highest level.

00:23:56.720 And these pro-Israel billionaires were like, oops, but now they're supporting the Republicans.

00:24:01.280 And I don't really care about Israel. 0.84

00:24:03.120 I care about the Democrats' wackaloon policies and taxes being stopped.

00:24:07.720 And if these billionaires finally wake up and decide to leave, then good, so be it.

00:24:11.180 So when these states tell these billionaires, we're going to tax you, and then Zuckerberg moves to Florida, well, guess what?

00:24:17.160 The Florida government's going to say to Zuckerberg, we want you to run your business a specific way.

00:24:21.960 It's called laws.

00:24:23.560 I'm not saying the government can go there and be like, you're conservatives now.

00:24:25.960 They're going to say, hey, we have laws in this state, right?

00:24:28.320 And if you're running your business, you've got to run it the way we expect it to be run.

00:24:32.260 Well, Zuckerberg is going to support the people who don't take his money from him.

00:24:34.680 So by all means, Democrats, keep playing this game and see what happens.

00:24:40.660 From CalMatters, California is still in the red with another big budget deficit projected for next year.

00:24:48.700 I'd like to give a golf clap to our Democrat friends.

00:24:52.000 Let me tell you how California works.

00:24:54.120 I lived in California for quite a bit, and I worked on the homeless issues out there.

00:25:01.400 And there was this interesting problem where no matter how much money they pumped into it, it didn't change.

00:25:07.460 No matter how much money they spent on the homeless crisis, no matter how many homeless shelters, homelessness just got worse and worse and worse.

00:25:15.080 You know why?

00:25:16.160 No one actually cared.

00:25:17.680 It was all short-term thinking.

00:25:19.740 They never actually wanted to address the real cause of homelessness, which is mental illness and, to be honest, the weather.

00:25:24.800 Instead, they said, look, I'm running for re-election, and these people are complaining about homelessness.

00:25:31.820 What am I going to tell them?

00:25:32.920 Sorry, guys.

00:25:34.780 There's no way to pay to make the problem go away.

00:25:37.500 And the nice weather attracts homeless people.

00:25:40.540 I got an answer for you.

00:25:43.160 You could tell them the truth.

00:25:44.960 The only way to remove the homeless is by force.

00:25:47.620 We're going to forcefully detain them and bring them to a facility.

00:25:52.940 And that may be the only way you do it.

00:25:56.100 There's a proposal in Northern California.

00:25:57.640 They would put any homeless person under a conservatorship and take any income they would generate, saying, if you can't manage your life, we'll manage it for you.

00:26:06.280 And there are challenges there because it means the government could just decide to take someone's assets from them if they deem them homeless.

00:26:13.660 How do you do it?

00:26:14.760 Adjudication, I suppose.

00:26:16.220 What do you think the people of California do when they hear that proposal?

00:26:19.600 No, that's so wrong and mean.

00:26:22.440 Okay, well, then you get homeless.

00:26:24.100 See, these liberals are short-term thinkers.

00:26:25.520 You got skid row.

00:26:26.920 They won't solve the problem.

00:26:27.920 They don't care.

00:26:28.840 They only need to sound good on paper.

00:26:31.020 So the politician says, vote for me, and I'll finally put a stop to this homeless problem by building houses.

00:26:36.320 They go, yay.

00:26:37.780 Now what happens?

00:26:38.940 Well, you can't just put a homeless person in a house.

00:26:41.040 Why, you ask?

00:26:41.980 There's a reason why they're homeless.

00:26:44.140 And it's not because they fell in hard times.

00:26:46.820 Because of substance abuse issues and choice.

00:26:49.500 So if a person can't do the basic things to maintain their own life, how will they maintain a home?

00:26:55.520 You see, many of these liberals don't own homes.

00:26:57.400 So they're like, landlords are evil.

00:26:59.200 And they don't understand it is a, I'm not going to swear, it is difficult to be a landlord.

00:27:04.800 Seriously.

00:27:05.660 I'm not saying landlords have it the hardest in the world.

00:27:08.180 But, oh boy.

00:27:09.880 I've rented property in the past, short term, and decided I am never doing this again.

00:27:15.840 You get a call one day.

00:27:18.060 Fridge is broken.

00:27:19.360 Okay, well, what happened?

00:27:20.720 I don't know.

00:27:21.480 What are you going to do about it?

00:27:22.560 Well, the truth is the tenant probably broke the refrigerator.

00:27:25.420 And now you've got to buy a new one.

00:27:26.720 That's your problem.

00:27:28.020 AC isn't working.

00:27:29.280 What happened?

00:27:30.040 I don't know.

00:27:30.440 It's not working.

00:27:31.040 Okay, well, the reality is they probably broke the AC and you've got to fix it.

00:27:35.200 Oh, the stove won't turn on.

00:27:36.940 What happened?

00:27:38.100 Doesn't matter.

00:27:39.580 You are renting it out.

00:27:41.240 And the people who are living there could be good or bad tenants.

00:27:44.380 And they can cause damage to your property.

00:27:46.420 And then you have to pay for it.

00:27:48.480 Now, security deposits exist.

00:27:49.980 Sure.

00:27:50.580 They're hard to claim.

00:27:52.220 It is not the easiest thing in the world to just be a landlord.

00:27:54.680 And often, you're not really making that much money.

00:27:56.800 I rented a property out.

00:27:57.720 I made a couple hundred bucks a month.

00:27:59.220 And it wasn't because I wanted to be a landlord.

00:28:00.620 It's because I owned the property.

00:28:01.740 And we were trying to sell it and we couldn't.

00:28:03.080 So I said, let's just rent it out.

00:28:03.900 And we did.

00:28:04.500 And we made a couple hundred bucks.

00:28:06.560 Awesome, you say.

00:28:07.500 Well, Tim, you should be lucky.

00:28:08.360 You were doing no work and you were making money off money.

00:28:11.340 Except the cost of maintaining the property was more than I actually made in rent.

00:28:16.440 And I owned it outright.

00:28:18.040 So I was like, this is pointless.

00:28:20.180 And you can't charge.

00:28:21.040 That's pointless.

00:28:22.280 Shut her down. 0.99

00:28:23.620 So I just sold it.

00:28:25.480 Cashed out a decent profit from the original price.

00:28:28.440 Largely, you know, I made some money.

00:28:30.400 So it worked out.

00:28:32.080 But this is what these liberals don't understand.

00:28:34.600 So you end up with a country, a state like California.

00:28:39.040 Their budget is in crisis.

00:28:40.760 They have a homelessness and drug problem.

00:28:43.000 Bubonic.

00:28:43.580 You know, I'm pulling this up.

00:28:45.080 I'm doing it.

00:28:46.000 I'm doing it.

00:28:47.020 Bubonic plague, California.

00:28:48.960 I bet you.

00:28:50.360 Oh, my God.

00:28:53.420 I should just do this story all the time.

00:28:57.460 What?

00:28:58.760 I can't.

00:28:59.440 This was like 2018.

00:29:00.780 I did this video.

00:29:02.020 August of 2025.

00:29:03.540 What to know about plague after a new case in California.

00:29:08.360 You know what?

00:29:09.700 I should just do a whole segment on plague popping up in California again.

00:29:12.980 Seriously.

00:29:14.160 It's the disease.

00:29:15.340 It's the crisis.

00:29:17.420 Maybe voter ID can save these people.

00:29:19.220 I don't know.

00:29:20.220 What I think is this.

00:29:21.540 There was a report that I saw that said Republicans have a Latino voter problem because of ICE.

00:29:28.600 You know what that means?

00:29:29.600 It means that there are Latino voters that care more about their illegal immigrant friends and family members than this country. 0.97

00:29:34.820 And that is the cascade failure. 0.84

00:29:36.320 You bring in an illegal immigrant. 1.00

00:29:39.320 Then you give forgiveness.

00:29:41.760 They get naturalized.

00:29:43.220 Their friends and family are non-citizens and they will vote on their behest. 0.96

00:29:48.040 That means every time you do this, you are eroding the borders of your nation.

00:29:53.280 So in California, voter ID could change the game because it makes ballot harvesting much more difficult.

00:30:00.960 And voting should be hard.

00:30:03.580 Now, the theory is this.

00:30:06.160 California is five years ahead of the rest of the country.

00:30:08.380 If that's the case, I hope you're ready to get cooked.

00:30:11.180 But I would be remiss if I did not at least present this from Business Insider.

00:30:14.700 I'm a millionaire living in California.

00:30:16.920 I'm happy to pay higher taxes since I have more wealth.

00:30:19.240 It just makes sense.

00:30:20.200 With all due respect to this guy, Scott Ellis, how much do you want to bet he's got his money in some kind of tax loophole?

00:30:28.400 Or let's just let's just say this.

00:30:30.820 I don't like the phrase loophole when people are paying taxes the way they were told to pay taxes.

00:30:35.860 Loophole implies they were told to do something and they found a way not to.

00:30:39.500 How much do you want to bet this guy has a wealth manager who makes sure that he pays the least amount of taxes possible?

00:30:45.240 Yeah, I'd be willing to bet.

00:30:47.860 He says, I love it here.

00:30:49.200 Nothing to do with taxes.

00:30:50.760 Taxes are the price I pay to live in a civil society.

00:30:53.360 You know why that offends me?

00:30:55.120 Because California is the homeless capital of the developed world.

00:30:58.760 And they're not taking your tax money to fix it. 0.99

00:31:02.120 They're just living like fat pigs off your tax money. 0.99

00:31:05.160 The price I pay is the bribe? 1.00

00:31:07.560 The corruption?

00:31:08.660 Oh, sure.

00:31:09.740 When the cop pulls you over and you go, the bribe I give you is the price I pay to live here.

00:31:16.160 Not in California, but in certain countries, right?

00:31:18.840 That's what he's saying.

00:31:19.980 Your tax money is going for corruption.

00:31:21.920 It's not solving the problems, but that's the price you pay.

00:31:24.740 Yeah.

00:31:25.700 The shakedown.

00:31:26.520 It's the price you pay.

00:31:27.980 Sure.

00:31:29.300 Nope.

00:31:29.480 It's worth it.

00:31:30.640 What is he getting?

00:31:32.240 We have achieved financial success.

00:31:34.840 He was a VP at Yahoo.

00:31:36.480 They have two kids.

00:31:38.140 He likes social issues, blah, blah, blah.

00:31:41.040 I've been struck by the massive accumulation of wealth.

00:31:45.560 People don't need more than $30 million.

00:31:48.600 Well, the question of want and what does need really mean?

00:31:52.720 Certainly.

00:31:54.040 You could live off right now, I think like $150 a year in most places on average.

00:31:59.140 Cities are more expensive than they bring the average up.

00:32:01.560 But the point isn't about what you need.

00:32:04.500 The point is about motivating people to work extra.

00:32:07.900 More work is good.

00:32:09.420 And people like this tell me to work less.

00:32:11.480 And I work real hard.

00:32:12.820 And I'm kind of smart.

00:32:14.260 I'm not going to call myself the smartest person in the world or the room,

00:32:16.440 but smart enough to run businesses and be creative, to make money.

00:32:19.420 So, if I'm told that working more will give me less, I just say, eh, why bother?

00:32:25.280 It's like pushing that stone up a hill.

00:32:26.920 It's not worth it.

00:32:28.700 But I'll tell you this, California, you do you.

00:32:30.700 And then we'll do what we can to make sure the rest of the country don't look like you. 1.00

00:32:34.140 Smash that like button, my friends.

00:32:35.620 Share the show with everyone you've met in your life.

00:32:38.540 Plague.

00:32:39.720 I should have just led with that.

00:32:41.200 Thanks for hanging out.

00:32:42.400 Follow me on X on Instagram at TimCast.

00:32:43.640 And we'll see you all in the next segment.

The Culture War - Tim Pool - February 16, 2026

California Wealth Tax BACKFIRES, Triggers COLLAPSE And EXODUS From State

Episode Stats

Summary

Transcript