Posted on 08/18/2020 3:23:00 PM PDT by karpov
A pack of Democratic lawmakers in California are proposing a wealth tax for the state's richest citizens, forcing them to pay more essentially just for owning a lot of stuff. They also, amazingly, want the tax to follow Californians who flee the state in response, attempting to make them continue paying taxes on wealth that's not even in the state.
Assemblymember Rob Bonta (D–Oakland) is blunt about his reasons for introducing the California Wealth Tax (A.B. 2088). Rich people have money. He wants more of it to pay for and expand state services. And that's it.
"The California Wealth Tax would add critically needed revenue for California by creating a more equitable tax structure," Bonta said in a press release promoting the bill. "Families are hurting right now. COVID-19 has only made matters worse. In times of crisis, all Californians must step up and contribute their fair share. Asking these well-resourced Californians to give a little more to keep our people working and support our most vulnerable is the right thing to do."
The proposed wealth tax would add a .4 percent tax on a taxpayer's net worth for net worths that exceed $30 million, which Bonta estimates will affect fewer than 31,000 Californians. From this proposed wealth tax, he estimates the state will raise $7.5 billion per year. The state currently faces a $54 billion budget deficit due in part to economic downturns from the coronavirus pandemic.
And to be clear, this tax goes beyond wealth and assets held in the state of California. "All worldwide property" of these wealthy Californians would be subject to this tax. If you park your money in real estate, farm assets, artwork, offshore funds, or a whole host of categories, they want a piece of it.
(Excerpt) Read more at reason.com ...
You know, that is the definition of “irony” (a most misunderstood word”). I doubt that Don Henley and Glenn Frey meant it anywhere near where you mean it, but, it doesn’t make it any less true.
I’m surprised California hasn’t started withholding taxes from all California public pensions. Force people out-of-state to file in California. Assuming this is considered illegal (I question whether public pensions are as immune as private pension), just lower the amount for any pension not being paid within the state.
Would this wealth tax apply equally? What I mean is, would Nancy Pelosi pay the tax too?
So along with the current documents each person gets in the mail today for the calculation of income, each person would also have to get documents showing how much your real estate is worth, how much your vehicles are worth, household possessions, gold and silver, and the list goes on. Because the determination of wealth would require a definition of wealth, and rules for calculation.
And each piece of paper would require rules to provide for determination of the value or worth. The paperwork increase would be enormous, and the complexity of state (and local) tax returns can only increase.
All good people should leave California and conquer Oregon.
Imagine your net worth is $100 million (of items subject to the tax).
.4% is a tax of $400,000 a year. Each year.
Spend the first $100K hiring the best tax attorney you can find.
CA will never see a penny when the tax attorney is finished their work, because their will be loopholes.
If the tax attorney determines there are no loopholes, then they will send you a very brief note: “Get the f&^% out of CA and hide your assets from them.”
I remember all the Hollywood types saying “the rich should pay a little bit more” and then the SALT limits were enacted and they went crazy .... just a little bit more hypocrites, just a little bit more.....
taxing assets out of the state will be declared illegal, no doubt
CA has tried this before with retirement pensions of people that worked in CA then retired elsewhere. It was shot down.
Ridiculous fascists
Not sure how they would enforce taxing people who no longer live or own property there.
Let’s suppose I own stock valued at the taxable level. To pay the tax I have to sell stock. Let’s say the value of my stocks then drop to below the taxable level. Do I get my taxes back? I may be worth thirty million, but I don’t have thirty million in cash. I am only potentially worth thirty million if I sell all of my assets. Some people may even be unable to sell their assets because of legal restrictions. So, I’m “worth” the money, but I can’t legally get the money.
This idea is a non-starter. I am amazed that lawmakers so frequently do not understand the law...or economics...or what governance is supposed to do. How do we keep electing idiots?
“...$30 million, which Bonta estimates will affect fewer than 31,000 Californians.”
As has been pointed out, the tax rate will be increased and the threshold will be lowered. Attempting to hide assets from the Franchise Tax board will be felony, of course.
For those who don’t remember, the Franchise Tax Board came up with the novel idea, that if you earned a pension in California and moved to another state, you owed California state taxes on the pension. That was eventually struck down.
When I donate my assets to a charity I control (like Bill Gates’ Foundation), I get a refund on my taxes and leave with my money too.
Well, I’m a native Californian and I still live here.
I sure as hell am NOT a millionaire, I’m not even a hundred thousand aire.
Do you really think that those BASTARDS in SACRAFREAKO are going to limit this tax to millionaires?
I get about 40k a year on my retirement, they will come for me very quickly.
Remember about 70% of the people in Ca. are either WETBACKS or WELFARE QUEENS and KINGS, they don’t pay any taxes at all.
THEY JUST TAKE!
How long before Kalifornia demands money from people who never set foot in that state?
California tried taxing the retirement income of persons who no longer lived in the state. They lost the court case challenging this law. I remember this well because I had a job offer in California. This was in the mid-90s.
That was aimed at all the people who spent a portion of their military career at CA bases, and then retired elsewhere. The goons at the tax board wanted their share.
True.
What message is Newsome sending to affluent Californians - run like hell and fight your ass off in court. Anything you spend in legal fees would have been lost in taxes anyway.
I’m not going to stand up to defend the mega wealthy. They don’t defend me. They attack me. The mega wealthy are disproportionately Democrat.
I’m ALL FOR IT!!! Most of the wealthy there vote for and finance the Democrats. If they don’t like it, perhaps they consider growing up before coming to people like me to help them out.
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