of assets exceeding $20 million.
Why not build one of these....
None needed along the boarder of Mexico, of course...
Mr. Schwarzenegger, tear down that wall...
Posted on 08/27/2008 4:22:08 PM PDT by dynachrome
Earlier this month, a California activist began gathering signatures to put a state wealth tax on the ballot. The measure would impose a new 35% income surtax (in addition to federal taxes and the existing 10.3% top state rate), and penalize people who leave the state by seizing 55% of assets exceeding $20 million. The money raised would be used to eliminate the state's budget deficit and for purchasing controlling shares in large corporations.
The 17.5% surtax is unusual because it would be on a taxpayer's total (not marginal) income whenever it exceeds $250,000, with another additional 17.5 percent tax on total income (for a total additional 35 percent tax) whenever it exceeds $500,000. In the case of single taxpayers or taxpayers filing as head of household, these additional taxes would be levied on incomes greater than $150,000 and $350,000 respectively.
So say someone has adjusted gross income of $1,000,000 and taxable income of $750,000. Today, their tax bill would be:
Federal Income Tax (35% top rate): $241,574
State Income Tax (9.3% top rate): $67,555
Payroll Taxes: $41,648
Total Income and Payroll Taxes: $350,777
Effective Tax Rate: 35%
With the new surtaxes, it would look like this:
Federal Income Tax (35% top rate): $241,574
State Income Tax (9.3% top rate): $67,555
Proposed Initiative Surtax (35%): $262,500
Payroll Taxes: $41,648
Total Income and Payroll Taxes: $613,278
Effective Tax Rate: 61%
(Excerpt) Read more at taxfoundation.org ...
Old news. Originally proposed in the 1850's by an obscure professor by the name of K. Marx.
Dude was mad as a hatter and ignored by everyone except a few French loonies.
Funny how it keeps coming up.
are there accurate numbers on the wealthy that have removed themselves from california?
They are just copying NY...
This is probably more a ego trip for the submitters. You need some serious cash to pay signature gathers. If you look at the actual text among the goals of this prop is to use the tax money to buy majority shares of oil companies, Ford and GM and investment banks so these companies would be forced to go green. I think this prop is even too much for the public sector unions or Silicon Valley to pay signature gathers for.
Would this be constitutional? Suppose your wealth is outside California. How can Calif. taxing authorities levy taxes against it? And they are going to charge you an exit tax if you want to move out of staet? Is this the carrot and stick approach to encourage you to stay in Calif.?????
This seems too bizarre.
Becoming more and more socialist all the time....
I’m moving. F California.
So what would keep the ‘wealthy’ from moving their money out of state and THEN ‘exiting’?
I’m sure this will encourage the wealthy to move into CA.
“California Activist Proposes Wealth Tax and Probably Unconstitutional Exit Tax “
EXIT TAX?? Give me a break! They want to charge me if I leave? How ‘bout an “Entrance TAX” for illegal aliens...we’d be in the black in a year!
What a bunch of morons.
i don’t understand your post.
california is taxing itself to death.
many younger people have left the state because they can’t afford to live here.
many middle class and professionals have sought bigger and cheaper houses in az, nm, co, mt, wy, ut, nv etc.
many rich people have moved their assets out of state to avoid excessive taxes. rush limbaugh keeps saying he’d like to live here, but can’t afford the taxes.
EXIT TAX
I would have nothing left to tax. What I hadn’t hidden, I would burn.
Please add an improperly assumed /sarc tag and my last post should make sense.
CA is a beautiful state, except for the govt and fruits that run it.
“goals of this prop is to use the tax money to buy majority shares of oil companies, Ford and GM and investment banks so these companies would be forced to go green”
That makes the proposal even funnier, of course. Imagine those nutbags running a business. That’s what it would boil down to. Green commissars.
Get a load of this.
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