He is not modeling the threshold below which wealth is not taxed. The wealth tax being proposed in California is 0.4% on amounts over $30MM, so the lifetime percentage taken by the government on a $30MM stock cash-out via the proposed wealth tax would be 0%.
So the proposal boils down to $30MM tax free, and then 21.4% on the amount over that. But you're also likely to invest that money making, say, 7%. So your return each year on the first $30MM is 7.0% and is 6.6% on the rest after paying this tax.
So the proposal boils down to $30MM tax free, and then 21.4% on the amount over that. But you're also likely to invest that money making, say, 7%. So your return each year on the first $30MM is 7.0% and is 6.6% on the rest after paying this tax.