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

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.

People actually got boobonic plague.

It's kind of crazy. You'd think it'd be gone, but it's not. Well, another big issue is this.

California just passed their wealth tax. And now we are seeing moneyed individuals leave,

and they are already projecting, I kid you not, a budget shortfall.

Those are not familiar, a wealth tax is taxing unrealized gains, which let me break it down for you.

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

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

The only problem is you don't have any money.

You just have a Pokemon card.

So how do you actually pay it?

You got to sell it off.

This works very similarly to property taxes, which many people have pointed out, 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 that doesn't actually

generate money for them. And thus, powerful individuals are leaving the state that's going to

trigger a budget shortfall. I don't know what California thinks it's going to do, but this, my friends, is why taxation is not so simple.

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

This is the idea that if you increase taxes, you decrease tax revenue. But see, as many of these Democrats don't know or care, they simply say, listen, I want to get elected. I'm going to tell the people what they want to hear. If you tax people, you make money. If you tried 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, just take their money from them and give it to me. And you're going to be like, listen, they'll just leave. I can't do that. They'll say, what? California tried at one point passing a law to tax individuals who had lived in the state within the last 10 years. That's right. You move out of California. You're broke. You move to Florida,

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