The California Exit Tax has been the subject of much debate recently, with many arguing that it is an unfair tax that unfairly punishes individuals and businesses for wanting to leave the state. There are several reasons why the California Exit Tax is controversial.
First, many argue that the California Exit Tax is unconstitutional as it violates the Commerce Clause of the U.S. Constitution, which prohibits states from regulating interstate commerce. They say that by imposing a tax on individuals who move out of the state, California is effectively regulating interstate commerce and preventing individuals and businesses from freely moving to other states.
Second, many argue that the California Exit Tax is a significant deterrent to businesses and individuals wanting to leave the state. They say that the tax makes it more difficult for companies to relocate to other states and for individuals to retire or relocate for personal reasons.
Finally, some argue that the California Exit Tax is an unfair tax that punishes individuals and businesses for wanting to leave the state. They say that the tax is not based on any actual economic activity or benefit received by the state and that it is simply a way for California to generate revenue.