California will go bankrupt from new tax proposal: New California Founder
“New California” Founder Paul Preston discusses the impact that passing the newly proposed tax bill, known as Assembly Constitutional Amendment 22, will have on California.
Two California lawmakers pushed back against President Donald Trump’s tax reform plan, calling it a “middle-class tax increase,” and introduced a new bill that would force large companies to give up half of its savings to the state.
Assembly Constitutional Amendment 22, which was introduced by California Assemblyman Kevin McCarty and Phil Ting, calls for a 10% surcharge on companies with a net earning over $1 million.
“New California” founder Paul Preston on Monday said California will go bankrupt if the tax measure is passed.
“Well we basically go bankrupt, continue on the path of financial tyranny, that we’re on right now. We’ll lose millions of jobs, which is apparently what this government in California wants to see happen,” he told FOX Business’ David Asman on “After the Bell.”
According to the San Francisco Chronicle, the bill may have difficulty passing because it would require two-thirds of the Legislature to go through.
Preston is confident that the proposed bill will also increase the unemployment rate, while exacerbating the homeless problem in California.
“We’ve been losing jobs and bleeding jobs for the last 15 to 18 to 20 years. Now we’re sort of at the bottom of the barrel so to speak, we have so much poverty out there, it’s not even funny. Homeless people all over the place. It’s going to be devastating to business,” he said.
Preston said the reason Democrats in California are pushing for this tax bill, is because they are desperate for cash.
“It also shows you how desperate Jerry Brown and the rest of the mono-party here in California [are]. They’re desperate right now, they are very desperate for cash,” he said.
This new bill is just one example of why the “New California” group issued a Declaration of Independence, which seeks to form a new state that separates itself from California.
“We’ve created New California state movement to stop this because it’s not going to stop. They are proving every single day they are not going to stop with the tyranny that they are foisting upon citizens of California,” he said.