California’s Billionaire Tax, Wealth Flight, and the Residency Trap

California’s proposed billionaire wealth tax could impose a one-time tax of up to 5% on covered wealth above $1 billion.In this episode, Clinton Donnelly breaks down what that could mean in practice, including the potential need to liquidate investments, the additional tax consequences that can follow, and why some wealthy residents may decide to leave California altogether.Clinton also looks at the longer-term impact of wealth leaving the state, how California determines tax residency, and why simply moving or changing your mailing address may not be enough.The episode covers:California’s proposed 5% billionaire wealth taxThe liquidity problem created by a large wealth-tax billCapital gains triggered by selling assetsWhy wealthy residents may leave CaliforniaThe potential effect on future state tax revenueCalifornia residency auditsThe Bragg residency factorsWhat it actually takes to establish that you have left CaliforniaA real client example involving California residency issues while living abroadDisclaimer: This episode is for general educational and informational purposes only and does not constitute legal, tax, investment, or financial advice.