Posted on 12/19/2020 5:01:17 AM PST by karpov
California’s Legislature is considering a wealth tax on residents, part-year residents, and any person who spends more than 60 days inside the state’s borders in a single year. Even those who move out of state would continue to be subject to the tax for a decade—a provision that calls to mind the Eagles’ famous “Hotel California” lyric: “You can check out any time you like, but you can never leave.”
The California Constitution probably allows a statewide wealth tax on residents, but any effort to create a tax capable of reaching across state borders is likely to run afoul of the U.S. Constitution. Taxing someone who spends only 60 days in the state in any single year—and extending that tax over an ensuing decade—would be something new under the sun.
Each year this tax net would gather up a new crop of taxpayers for the next decade. The range of people it proposes to ensnare is staggering: every student attending college in California, anyone having a major medical procedure at a California hospital and needing an extended in-state recovery period, and those who spend two months in California away from New York or London winters. Under California tax law, there is no distinction between a nonresident from Minnesota and a nonresident from Dubai.
Assembly Bill 2088 proposes calculating the wealth tax based on current world-wide net worth each Dec. 31. For part-year and temporary residents, the tax would be proportionate based on their number of days in California. The annual tax would be on current net worth and therefore would include wealth earned, inherited or obtained through gifts or estates long before and long after leaving the state.
(Excerpt) Read more at wsj.com ...
Government greed knows no bounds.
Does that include illegal immigrants?
What’s next...border crossings all the away around California’s perimeter with a California Passport?
CA government officials complicit in the Reconquista.
Will Mexican illegals be pissed when they’re in Mexico again?
california has a LONG history going back to the last
century stealing from CITIZENS in other states.
it is what they do.
why?
they get away with it from the seditious, treasonous
blackrobes (think: King Sullivan and Malta’s Roberts
who can neither read, or Obey any Law except what
they FABRICATE ‘on the fly’ (Ordered by their controllers).
CCP = California Communist Party
This should drive a stake through the heart of film making.
Fyi.
NYS is the same after only 14 days.
I recently once worked around 17 days there and thought I was safe (most states have a 30 day rule).
Was forced to fill out thr massive NYS tax forms. They want to know ALL income sources and you are taxed accordingly.
And....any pension earned in those days they feel they have dibs on.
Never again...
Here in Virginia, at least my county, one can get a cut in taxes by having a farm use. If you qualify, it cuts the real estate property tax rate in half. However, when you stop the farm use, by design or by selling the property, you owe 6 or 7 years back taxes on what you had saved!
Bureaucrats are one trick ponies. All they know how to do is increase taxes.
Reaganomics depended on reducing government spending, across the board, and every one is quick to call it a failure due to not taxes the middle class enough when, in truth, it was never implemented properly.
A first-in-the-nation combination wealth tax and exit tax.
A.B. 2088, as amended on August 13 by 12 Assembly members and 2 Senators, would impose a 0.40 percent annual tax on a taxpayer’s worldwide wealth above $30 million, not counting real estate, based on market value at the end of each calendar year. Part-year residents would pay a pro-rated tax based on the number of days spent in California each year. New residents would have the wealth tax phased in for them over ten years.
I read a couple of more articles about the proposed “wealth tax”.
The rich will have to flee, not because of the dollar amount of the taxes (which they can easily afford) but because of the bureaucratic requirements that would be added to the tax code.
That requires _assessments_ of _all_ of their assets, including private held company shares, collectibles such as art, as well as disclosure of all sorts of “wealth” that they may not want to disclose.
In addition, the tax would apply for up to ten years even if the wealthy fled the state.
That should be enough to get the wealthy to get a head start and run from the state now!
It should only be for the proportion of the one year you spent in the state.
Bad, but from what you've written, the tax is "only" on income for that year.
This would be a wealth tax, with a ten-year overhang.
This just screams inept State government incapable of managing to a budget. And yes of course, taxpayers in other States will end up bailing them out.
NY and CA have businesses and successful people leaving. Gee, I why? What could possibly be the reason?
A good friend from CA told me of that State chasing people that moved for taxes retroactively applied. If I recall correctly it was a property tax (could be wrong). Imagine that, you leave CA and a few years later receive an unexpected bill for tax that didnt exist when you were there.
A tip.
The liberal elite who demand an expansion of their fascist-socialism at everybody else’s expense, have fire pits on their exclusive beach areas.
They sit, watching the ocean and the stars and their wood-burning fires, and stopping the nagging ringing of their mobile phones (calls from their private jet aircraft maintenance chief) . . .
While jabbering away on Twitter, about how much everybody else fails to realize the jeopardy of carbon dioxide.
Airline passenger “technically the plane had an issue why traveling to Hawaii and made an emergency landing for repairs”
”Ja, here’s your tax bill.....”
There was a time when patriots did something about “taxation without representation.’
The first question that comes to me is: “If someone choses to never again step foot inside California’s borders, what mechanism does California have to enforce the law?”
Both wiil
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