Posted on 01/10/2024 11:41:45 AM PST by dennisw
Legislation moving in Sacramento to establish a wealth tax on high earners and a bounty-hunter scheme for plaintiff attorneys to target alleged tax dodgers.
Democrats introduced the bill last winter, will get a hearing Wednesday as lawmakers scrounge for revenue to fill a projected $68 billion budget hole. Gov. Gavin Newsom on Wednesday will unveil his budget for the coming year. Democratic legislators are proposing a wealth tax as an alternative to spending restraint.
The bill would impose annual excise tax of 1.5% on the worldwide net worth of every full- and part-year California resident that exceeds $1 billion, starting this tax year. Come Jan. 1, 2026, the state would tax wealth that exceeds $50 million at a rate of 1% each year, with an additional 0.5% tax on assets valued at more than $1 billion.
Part-time residents would be taxed on a pro rata share of their wealth based on the number of days they spend annually in California. The tax would also apply to nonresidents who have recently left the state. You can check out of the state, but you would still have to pay California’s wealth tax if you do.
Wealth tax would apply to nearly all assets, including shares in a partnership, private-equity interests, artwork and financial assets held offshore. California’s Franchise Tax Board would value assets that aren’t publicly traded. That means private businesses located outside the state could be examined by the board’s auditors and appraisers.
It’s worth noting that Democrats exempted real property from the tax as a favor to their high-end real-estate industry and Hollywood donors. This carve-out would encourage the wealthy to shift more of their investments into real estate. Perhaps Democrats are trying to ameliorate the damage from local mansion taxes in San Francisco and Los Angeles on real-estate sales.
(Excerpt) Read more at msn.com ...
INCLUDES THIS BONZO IDEA>>>>>
To spread the wealth around to plaintiff-bar donors, the bill would apply the state’s False Claims Act to wealth-tax records and statements. This means plaintiff attorneys could sue affluent individuals on behalf of the state for allegedly under-reporting assets. Plaintiff attorneys would be entitled to a share of the state’s recovery.
What gives them the authority to tax non residents?
Anyone with the wherewithal to get out of Kalifornia should do so immediately.
I would like to own a moving van.
Well, the Harkles won’t have to worry about this.
After-tax wealth is property. This is an illegal takings of property for government use without just compensation.
This part of the 5th amendment has been incorporated against the states.
Also, it is double-taxation if California already taxed this wealth in the year it was earned.
-PJ
Everyone needs to apologize to Ayn Rand
California and its “leaders” are EXACTLY as she described, not at all exaggerated, over-simplified or distorted.
“The tax would also apply to nonresidents who have recently left the state. You can check out of the state, but you would still have to pay California’s wealth tax if you do.”
Blatantly illegal. Aside from the year you leave, when you leave permanently and fully, you owe them nothing.
It’s worth noting that Democrats exempted real property from the tax as a favor to their high-end real-estate industry and Hollywood donors. This carve-out would encourage the wealthy to shift more of their investments into real estate.
CA is lost. It will slowly go bankrupt, all the while demanding money from Washington, which means this will affect the entire country.
Such a STUPID law that they will collect nothing from anyone.
“Anyone with the wherewithal to get out of Kalifornia should do so immediately.”
Too late...
“The tax would also apply to nonresidents who have recently left the state.”
” California’s Franchise Tax Board would value assets that aren’t publicly traded”
Insane.
I wonder how many of those people will take their voting habits with them and will continue to vote democrat?
“Wealth tax would apply to nearly all assets, including shares in a partnership, private-equity interests, artwork and financial assets held offshore. California’s Franchise Tax Board would value assets that aren’t publicly traded. That means private businesses located outside the state could be examined by the board’s auditors and appraisers.”
Can you imagine what a nightmare this will be for everyone every year since everyone will have to determine the value of every bit of things one owns to see if you meet their thresholds?
“It’s worth noting that Democrats exempted real property from the tax as a favor to their high-end real-estate industry and Hollywood donors.”
I would think that if this tax causes an exodus of wealthier citizens it would eventually collapse the real estate market.
“Atlas Shrugged”—greatest book I’ve ever read.
Budget hole? What about the billions needed for reparations to non-slaves?
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