is it time to get the hell out of dodge this video is going to ask that and an even more important question if we as a society constantly and systematically punish success and reward failure what do you think we will get more of in the future celebrities are fleeing california right now and it's not just celebrities it's any high net worth individuals and business owners which means loss of jobs everything you need to know about i'm going to change this too because i don't believe in the red


state blue state stuff but uh california and new york compared to more hospitable less extractive places in the middle of that article there's this great chart who spent responsibly comparing the four largest states and this chart covers the range from 2000 to 2019 so california new york increased their per capita so that's per person state government spending by around 50 percent since 2000 by contrast texas's increase during that time was modest and florida had a significant decrease


and so here you have california spending 52 more per person this is where i was from california texas new york at 49 texas at 5 increase and florida at -16 well guess what these places have good schools good roads they've got the things that california and new york have except they don't have income tax and so the places that uh the people that are fleeing california the businesses and the celebrities and the high net worth individuals the people that are leaving here are going to these places


is it time to get the hell out of dodge uber warns of a 111 percent price hike after california judge rules drivers are employees this is the government getting involved in every aspect of our lives um so uh a ruling me the ruling means that companies the companies will be required to provide various benefits to drivers including overtime pay remember that one because we're going to come back to it and health insurance the lawsuit filed in may by the attorney general and the cities of san diego los


angeles and san francisco argued that the companies have been illegally classifying uh their drivers as independent contractors under the states relatively new so illegally under this new bill that was introduced in jan it was it went to into effect january 1st and uh uber and lyft argued that their drivers can be considered contractors under the abc test because they are technology companies that connect riders to drivers and this is absolutely true they don't hire anybody what they do is they vet drivers to


protect you and to make sure that all of the drivers pay their taxes and play by the rules so they're making sure that their cars have insurance that the drivers have a good driving record and they aren't criminals that uh that could assault you so these are not transportation companies hiring drivers to perform rides they are companies that just match up two people that want to make a transaction and whenever uber and lyft go into a city or a state they the amount of drunken driving arrests


drunken driving accidents and drunken driving fatalities drops the the old data i'm not sure what it is uh today but the all data early on in uber's uh you know history was that when they'd go into a town uh drunken driving accidents and deaths would go down by about a third right away and so that's thousands of people that have that are alive today because of uber and lyft but they have done more to reduce drunken driving than all of the police dui checkpoints nationwide have done in the past 30 years


so this is the market and people being able to choose not to drive drunk because they don't have to wait an hour for a cab or something like that it's it's very convenient and very cheap and not worth the risk so people are choosing not to drive drunk instead of the government threatening you with fines and arrests and everything else and doing these checkpoints and the cost the checkpoints come out of your taxes by the way uh uber is a voluntary transaction this is a mandated forced


transaction and now when we come to the overtime pay what does that incentivize this is part of economics and i'm going to get right after this i'm going to show you uh some of frederick bastiat's writings and one of the things he did a whole series on that which is seen and that which is not seen and in economics it's quite important to try to foresee the consequences of of any of your actions how does california overtime work you get time and a half for any work over eight hours


or work over a 40-hour work week you get time and a half for the first uh eight hours of the seventh consecutive day uh you get double time once you go over 12 hours and you get uh double time for the any work over eight hours on the seventh consecutive day so this is incentivizing people to work i mean if you can uh hold out and drive continuously for 12 hours on hour 14 15 and 16 you know 13 14 50 if you can drive four more hours that's equivalent to driving a whole eight hour day just that four hours


and so they're highly going to be highly incentivized to drive this long uh and then they're also going to be highly incentivized to work themselves seven days a week just constant work now i don't know if you have ever driven for 12 14 16 hours but i have quite often i'm an entrepreneur i had businesses when i was in my 20s and 30s and i would do whatever it took and sometimes one time i drove 20 hours straight from los angeles to portland oregon another time i drove to seattle from


seattle to minneapolis st paul without any sleep at all just a one you know just drive uh and the reason is is something made me late and i had an appointment a commitment and i did anything within my power to keep that commitment because it was my business and so uber lost 8.5 billion in 2019 they have never made a profit yet california seems to want to sort of punish them and make it this is their largest market cal is california and uh now they're going to have to either make all of their


drivers employees and to do that they've got to raise rates drastically or they've got to pull out of california and drunken driving arrests will go up but either way even if the drunken driving arrests don't go up after you pass that uh you know at eight hours of just constant driving you start getting a little bit hypnotized by the uh scenery going by and at 12 hours you start to get dopey and by like 13 14 15 hours it's just it's just like you're drunk you know i did it but i was in my 20s and 30s i


wouldn't do that today i would make a different choice i would call uber if the natural tendencies of mankind are so bad that it is not safe to permit people to be free how is it that the tendencies of these organizers he's talking about the lawmakers and government here are always so good do not the legislators and their appointed agents also belong to the human race or do they believe that they themselves are made of a finer clay than the rest of mankind the great frederick bastiat reads some


of his works uh he was an economist before the french revolution and then got uh elected to the legislative uh assembly france had five different governments and three different constitutions during the french revolution but uh he was part of the and his arguments uh in the legislative body uh to all of the other uh politicians that are trying to run everything and make up all these rules and laws and dictates his arguments were just brilliant and so i highly recommend going to mizes institute and looking at


that which is seen and that which is not seen i will just read it it's it's a compilation of the broken window is just beautiful the candle maker's petition i believe might be one of them but in the department of economy an act a habit an institution a law gives birth not only to an effect but also to a series of effects of these effects the first only is immediate it manifests itself simultaneously with its cause it is seen the others unfold in succession they are not seen it is well for us if they are foreseen


between a good and bad economist this constitutes the whole difference the one takes account of the visible effects the other takes account of both of the effects which are seen and also those which it is necessary to foresee now this difference is enormous for it almost always happens that when the immediate consequence is favorable the ultimate consequences are fatal and the converse hence it follows that the bad economist pursues a small present good which will be followed by a great evil to come while the true


economist pursues a great good to come at the risk of a small present evil and you know sometimes you have to make an investment sometimes you have to put away something for the future sometimes you don't go for the thing that is going to give you the best results right now so is it time to get out of dodge california is going to they're proposing a tax hike on california millionaires that would create a 54 tax bracket this is the reason i left california i loved california and i would move back


in a heartbeat if they didn't punish you so much for living there for creating wealth there for creating jobs there there were three years when i was in california where i paid just under 50 tax and that's because i had an s corporation there are several types of corporations a c corporation is if you're going to take a company public when you do a c corporation all of the profits stay in the company and you're taxed at them on a much lower rate but if you take them out of a c corporation you're taxed again and it


ends up being a much much higher rate in an s corporation the tax consequences flow through to the owners but if you're going to take any profits out of the company uh you get to take out those profits and only pay income tax one time but there were three years where uh i had to pay probably 10 times my income in taxes how is that possible well you try to live frugally and leave everything in the business so you can grow the business and then along comes this big tax bill at the end of the year


and you've lived on a certain amount but you've got to take this huge amount out of the company to be able to pay the tax bill so there were a couple of years where i paid almost 10 times the amount of money that it took the amount of currency that it took for me to survive during that period of time so in this bill it's going to change the top marginal tax rate which is currently 13.3 and that sits again on top of the federal income tax which is 35 maximum rate when i was there this 13.3


sat on top of a 39.6 tax rate they've lowered that a bit but they want to change it to 16.8 for millionaires anybody with incomes of more than five million dollars but wait there's more this is the history of california state sales tax back in the 30s a 2.5 rate was considered fair this is what's fair then it was a three percent was fair no no that wasn't fair two and a half percent no three percent then four percent five percent six percent this is what i remember for most of my life


uh the five percent when i was a little kid six percent when i was a teenager and in my 20s seven and a quarter percent now it's 7.5 percent but then on top of that there's a bunch of city taxes and what you see here is mostly like it's the average is about eight and a half percent uh i lived in los angeles so i was paying 9.5 so this is after you have already paid 50 percent what's left you pay another 10 on which is equivalent now to 20 of your pre-tax income because you lost 50 of it first


in in income tax and then is it time to get the hell out of dodge uh california isn't stopping there they just there was just a proposal last thursday for california legislators proposed a wealth tax and this is a 0.4 so it's small percent tax on your net worth not on your net in not on your income you could have severe losses you could be filing for bankruptcy protection you're still taxed on whatever you own worldwide and so here is the list of some of the you know stocks in uh any publicly traded company


any s corp c corps s corps partnerships private equity and hedge funds interest uh in on in any non-corporate businesses so if if you're a business owner with any business and here's the thing all of this burden has to be calculated by your cpa and so this is all going on your tax returns now and it didn't before so the drag on the economy and on the expense i mean i spend so much to file a tax return one year my tax returns were like they were more than a half an inch thick and i've got three different cpas because i


am still paying taxes in california a friend of mine joked that california is like herpes it never goes away it keeps on coming back uh so uh cash deposit you know bonds interest bearing savings account cash deposits farm assets mutual funds put some call options futures contracts so you've got to report every trading position that you've got if you've got a brokerage account art and collectibles so the stuff hanging on your walls in your house has to go into your tax return now financial assets held off shore pension


funds other assets excluding real property we'll get to the punch line on that in a moment debts and other mortgages and liabilities uh secured by real property real property so they should just say all your assets mortgages i mean it is it's all of your assets it's your total net worth and guess what it doesn't go away it's like herpes california this new proposal wealth tax would continue to tax californians 10 years after they move out of the state and the way this works is uh each year it goes down by ten


percent uh so it's nine if you move out and you pay a hundred percent and then ninety and then eighty and and on the eleventh year you're finally out and you but californians now they have so run for your life if you live in california government believes that all of your income is theirs and then they magnanimously allow you to keep a small portion and that portion varies i mean there's there's always some politician changing the rules on you that poor that this portion that they allow you to keep


is something that goes up and down every single year alexandria acacia cortez proposed a billionaire tax for the state of new york and she's also calling it the uh make billionaires pay act and uh further down in the article uh they want to gen they say that the tax would generate 5.5 billion dollars but look at this the top 1 of earners who currently account for almost 40 of the state uh tax revenues are highly mobile and so governor cuomo is worried he's against this because he thinks that uh the wealthy


are going to leave the state and boy is he right they will they're coming to puerto rico and other places such as this uh there's 118 billionaires that have increased their net worth by 44.9 so let's call that 45 billion during the pandemic remember this part during the pandemic uh because politicians have a great way of skewing things and spinning the facts to appeal to the reptilian part of your brain that generates uh your emotion and so they're they're able to control people with this


during the pandemic now uh most of these people their the value of their net worth is determined by their uh stock portfolio and the the pandemic you know the lockdowns started here so this is their definition of the beginning of the pandemic and so all of these billionaires just lost 45 billion dollars and now they've gained it back again so they're going to punish them for getting back to where they were back in february i just think it's amazing beware that this is paraphrasing doug


casey beware of the day government stops treating you like a milk cow and starts treating you like beef cattle and these politicians have their forks and knives in hand and they're coming after you right now is it time to get the hell out of dodge it certainly is huge increase americans renouncing citizenship surges to record levels 5816 americans renounced their citizenship in the first half of 2020. further down in this article there's this chart that shows you know it used to be 400 then 500 a year


and then it peaked at 5411 back in 2016 and we're at 5816 in just half the year people are are realizing what is going on and they're protecting themselves and and they're getting the hell out of dodge since this is an era when many people are concerned about fairness and social justice what is your fair share of what someone else has worked for thank you thomas sowell he is like he's a professor of economics he's in his 90s now but he just has done brilliant written many books brilliant work over


the years i have never understood why it is greed to want to keep some of the currency you have earned but not greed to want to take somebody else's currency thanks again logic government is the great fiction through which everybody endeavors to live at the expense of everyone now everybody else the great frederick bastiat read his stuff now some of you would say bastier is the proper prenun pronunciation except he comes from a section in france where it would be pronounced bastiat but nobody really knows


the proper way to pronounce his name brilliant economist died at the age of 49. friendly reminder robin hood did not rob from the rich and give to the poor he robbed from the government the sheriff of nottingham who took all of these taxes and gave back to the tax victims and that is true up until 1913 americans kept all of their earnings despite this america still had schools roads colleges vast railroad subways and an army and navy buy california four more taxpayers not funding your bad ideas and this one really hits home


for me because when i left california i moved to puerto rico where i have tax exemptions and uh and three of my media team my news guy one of my animators and my producer director came with me so four more and and you know california lost a lot of jobs when when i moved out of state let me see if i understand this if i work i have to pay taxes to the federal government but if i don't work the federal government pays me a fine is a tax for doing wrong and attacks is a fine for doing right if we as a society constantly and


systematically punish success and reward failure what do you think we will get more of in the future jacqueline you take below and you take the rest of your men and you get out of dodge so i want to thank you for watching we'll see you next time