The state's response involves implementing a wealth tax, which includes the annual taxation of the rich based on their assets.
The proposed wealth tax in California introduces a potential exit tax for individuals and businesses that decide to move out of the state.
This tax aims to apply to full-time, part-year, and temporary residents of California, with specific provisions for apportionment.
The proposed wealth tax is structured to not affect California residents with a net worth below $50 million.
Critics have raised concerns about the legality of the proposed wealth and exit taxes, debating their constitutionality.
Williams warns that California's tax measures could serve as a model for other states facing financial difficulties.
The public has voiced strong opinions against the exit tax, with many claiming it violates constitutional rights.
The tax's reach extends to a proportion of an individual's wealth, calculated based on the days spent in California each year.