I’m thrilled they got their money out. But since it’s easy to figure out who ducked the tax, why not go after the assets in their new location? I assume it would be like this. I have my money in a California bank. California decides to balance their budget with a “one time” tax on deposits. I move my money to Nevada. I’m certain that California would come after it. Probably they’d threaten to close all the California branches of the Nevada bank if it wasn’t turned over. Then, I’d have to go to a California court to get it back. (Comments?)
Not a bug it’s a feature. All the RIGHT people got the nod to get their money out in time.
CA is worst. Their regulators would audit a bank. If they find a bank have accounts that were inactive, they would use CA laws to seize the account and force the saver to reclaim it thru a state process. It takes time, but the seized inactive accounts provide cushion for state debts. Worst if a safety deposit box is inactive, the contents are seized and auctioned off to raise cash for CA gov. If one is smart, make sure you visit your safety deposit boxes twice a year and make deposits in person to any savings accounts you have at least twice a year so a cash hungry state does not force the bank to declare it inactive and seize it. Otherwise pull the money out.
Except once it got to Nevada, it was split ten times and sent to ten different states. Where it was all sent to another country. It all came back together in the final country and deposited in a numbered account in some haven we haven’t heard of yet.
Practically untraceable.
Agree completely. In fact the word for this is basically an ‘exit tax’, which is what we impose on rich folk who decide that citizenship in the US is to expensive.