Bill Maher Blasts California Taxes, Says State Takes 40% Like a Drug Dealer

Q: Could California's proposed tax on billionaires pursue their fortunes even after they have moved away?

Yes — as drafted, California’s proposed billionaire tax is meant to reach some fortunes even after a person leaves the state, though that feature is likely to face serious court challenges. The 2026 ballot proposal would impose a one-time 5% tax on net worth above $1 billion. Its key mechanism is a residency trigger and a later valuation date: people who were California residents on Jan. 1, 2026 could be taxed on their global wealth measured at the end of 2026. That means someone who moved out during the year could still be taxed, including on wealth that rose after departure. That is why some wealthy Californians reportedly moved before the Jan. 1 residency date. Supporters designed the measure to make relocation less useful as a tax-avoidance strategy. Critics, including Gov. Gavin Newsom, argue that wealth is mobile and that such a tax could accelerate departures. The biggest uncertainty is legality. Tax lawyers say the proposal could be attacked as an unconstitutional exit tax because it would tax former residents on assets and appreciation with little or no ongoing connection to California. Likely arguments would center on due process, fair apportionment, and the right to travel. So the short answer is that the proposal does attempt to pursue some billionaires’ wealth after they move away — but whether California could actually enforce that provision is far from settled.

1 articles · Updated · Fox News · Jul 20

Maher used Monday’s “Club Random” podcast to argue California makes it “almost impossible” to run a business, saying the state takes “like 40%” and joking that even drug dealers skim less.
The comparison was a riff rather than a precise tax claim: California’s corporate tax rate is 8.84%, while C corporations also face the 21% federal rate, plus payroll taxes and other fees.
Guest Jack Whitehall extended the joke, saying steep taxes leave business owners “forced to diversify” into side ventures such as gardening businesses and tea rooms.
Maher has made the same broader complaint before, saying in April that state, local, sales, property and other taxes consumed nearly 60% of his income and rejecting claims that the rich do not pay enough.