Scott Jennings slammed California’s latest budget move: a proposed five percent wealth tax on the state’s richest residents. When he argued the tax was meant to recoup billions lost to fraud, the CNN panel erupted, while Abby Phillip brushed it off, claiming every state loses money to fraud, as if widespread losses justify ignoring the problem.
"I'm not arguing for it, I'm just saying, it's not a millionaire tax, it's a billionaire tax," Phillip said. "So the idea would be, I guess, to use that revenue in order to offer improvements for the average Californian."
"Worth debating, why pick a billion?" Jennings replied. "Why in Washington did you pick a million? Why didn't you pick $999,999? Why not pick $500,000? Why pick five percent? Why not six [percent]? Why not 10 [percent], why not 20 [percent], why not 50 [percent]?"
"The thing is, it's all arbitrary just to attack people that we hate. And it is not for the public benefit. In California, the state auditor just found $70 billion in fraud going on in the state. The reason they need a wealth tax is to cover up the fraud. The hole in the budget in California is due to fraud. That's why they're trying to tax..."
Jennings was then interrupted as the liberals on the panel attempted to jump in before their listeners could hear.
Abby Phillip made a curious, almost conceding argument, admitting, “There is fraud in every state in the union, in red states and in blue states.”
Does that excuse the fraud, or the attempt to cover it up?
🚨 BOOM! Scott Jennings drops straight TRUTH BOMB on the real reason for California's proposed "wealth tax"
— Eric Daugherty (@EricLDaugh) December 30, 2025
"The state auditor found $70 BILLION IN FRAUD! The reason they need a wealth tax? To COVER UP THE FRAUD. The hole in the budget is due to fraud." 🔥
*Panel erupts* 😂… pic.twitter.com/UAGQzYh7Ng
Jennings even asked if the extra money in the hands of the California government automatically meant the state would wisely and effectively spend it.
Jamal Simmons: “So, when we go and we tax these billionaires and we get that other 5% out of them, we're going to spend that money well to make sure our kids have a chance to have the best schools and get the best start in life.”
— RedWave Press (@RedWave_Press) December 30, 2025
Scott Jennings: “California is going to spend… pic.twitter.com/azGIQjXaHb
Just imagine if the same scrutiny being applied to Minnesota was applied to California, whose welfare programs have more loopholes, more bureaucracy, and are far better funded.
The state auditor uncovered $70 billion in fraud; imagine what remains hidden. And that’s still just the tip of the iceberg, not even including the blatant waste of taxpayer money plaguing the state.
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