California mulls 'Elon Musk tax' to keep wealthy from bolting to Texas

Silicon Valley billionaires: the grass may not be greener in Texas for much longer. California lawmakers are considering a "wealth tax" that would not only introduce a 1.5% tax on net worth in excess of $1 billion by 2024, but also allow the state to pursue that tax for former residents who flee the state for tax-friendly locations like Florida or Texas.

Alex Lee, a member of the California State Assembly, introduced Assembly Bill 259 and Assembly Constitutional Amendment 3 on January 19. The bill would also lower the threshold for the so-called wealth tax to $50 million by 2026 at a rate of 1%.

It's already proving to be controversial among California lawmakers, like Bay Area Council CEO Jim Wunderman, who told the San Francisco Business Times that the proposed bills sounded "really dangerous and foolish," and that the wealth tax would "only increase California’s dependence on the minute number of people who are bearing the burden of supporting the state's expenditures."