Posted on 12/23/2020 6:42:41 AM PST by blam
The California legislature proposes scheme after scheme to tax the wealthy.
You Can Check Out But Never Leave
California's proposed wealth tax, Bill 2028, would apply for a DECADE to anyone who spends 60 days in the state in a single year.
Here are the details.
• A 0.4% tax on residents with a worldwide net worth in excess of $30,000,000 ($15,000,000 for a married taxpayer filing separately).
• The proposed tax would apply to residents, part-year residents, and temporary residents.
• Temporary residents are defined as those who stay in the state more than 60 days during the calendar year. For part-year and temporary residents, the tax would apply proportionally based on the number of days they are in the state during the year.
• 10-year lookback provision : The portion of a taxpayer’s wealth subject to the wealth tax is multiplied by a fraction, the numerator of which shall be years in residence in California over the 10 preceding years with 10 years being the denominator.
Assets Subject to Taxation
Stocks, options, bonds, cash, farms, in short, everything is covered including unrealized gains.
The Wall Street Journal comments on A California Plan to Chase Away the Rich, Then Keep Stalking Them.
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 WSJ article came out on December 18, but my understanding is that bill had already died by that date.
However, economic nonsense never stops.
Deja Vu: Another Wealth Tax Bill Introduced
The California Globe reports Another Wealth Tax Bill Introduced in Assembly.
A new bill was introduced in the Assembly this week that would simultaneously increase corporate taxes, raise income taxes on citizens making over $1 million a year, and eliminate corporate tax “loopholes.”
Assembly Bill 71, jointly authored by Assembly members Luz Rivas (D-Arleta) and David Chiu (D-San Francisco), aims to create a homelessness solutions fund dubbed the “Bring California Home Fund.”
To fund the program with at least $2.4 million, AB 71 would specifically increase the corporate income tax to historical high rates to create a more “progressive” corporate income tax, would increase the personal income tax for anyone in California making more than $1 million, eliminate or limit corporate tax loopholes including the water’s edge election, and would “mark to market” unrealized capital gains and repeal step-up in basis inherited assets, raising the amount generated from capitol gains.
“It’s absolutely crazy,” Los Angeles-based financial consultant Richard Ritz told the Globe. “We’ve been seeing wealthier people leave the state for years because of high taxes, including, most recently, Elon Musk. Especially the Bay Area.”
“A lot of wealthy people had that wealth tax proposal earlier this year as the trigger to move, and now many who stayed after it was defeated are looking at this one for being a trigger.”
"Bring California Home Fund"
What a hoot.
These ridiculous schemes will do nothing but drive the wealthy taxpayers away.
AB 71 is modest in comparison to Bill 2028 but rest assured it would not stop there.
Progressive madness never stops.
A wealth tax may be legal at the state level, but it would never pass a constitutional test in the Supreme Court on those who left.
And yes, the wealthy would leave. So would more corporations.
Leave Now
1.Elon Musk Leaves California: As Tech Flees Silicon Valley, Rents Plunge
2.New York: Flee New York If You Can
3.Illinois: Escape Illinois: Get The Hell Out Now, We Are
4.Illinois: It Takes 3 Weeks to Escape Illinois
Those are the proper responses to tax madness.
California does understand that they are trying to illegally tax people who have the wherewithal to actually litigate against this, right?
> The portion of a taxpayer’s wealth subject to the wealth tax is multiplied by a fraction, the numerator of which shall be years in residence in California over the 10 preceding years with 10 years being the denominator. <
I’ve read that math is racist. So I am appalled that California would use math in this proposed new law.
Mish should know a thing about turning the place you grew up into a sh!thole and then leaving.
Mish has terminal TDS and has supported the looney left in Chicago for decades.
And just this year - he sold his house in Chicago and moved his family to deep red and Trumpland Utah.
And will work as hard as he can to turn Utah into Chicago.
Grading is racist too:
An Anti-Racist Education For Middle Schoolers (Eliminate Grading)
(San Diego)
More companies will be moving to Florida and Texas soon...
This was proposed legislation—already toast...but....
The wealthy should get a head start on the certain future stupid legislation—and get out now.
At a minimum they should sell all CA assets and get the proceeds offshore to guarantee the state can’t seize them at a later date.
The trick to staying rich is to be five steps ahead of the tax-man.
The real truth, it ain't the wealthy their after, it's whitey... I think the stinking politicians in Califphoney aspire to that old saying, "It's better to rule in hell then to serve in heaven."
USSC ruled such laws un-Constitutional. Up until the mid-90s, California taxed the pensions of persons who had moved out of the state if those persons had lived in California in the past.
Socialism is a slow death California must love the pain of it.
I wonder how this will play in Hollywood?
Will the wealth Hollywood elite stay and pay their fair share?
Vaduz wrote: “Socialism is a slow death California must love the pain of it.”
“The problem with socialism is that you eventually run out of other people’s money.” ― Margaret Thatcher
California is always looking for other people with money. The best thing about taxing people after they move out of state is that they can no longer vote.
They hire the world’s best tax attorneys—and pay at a lower effective income tax rate than their chauffeurs.
“Pigs get fat and hogs get slaughtered”...
Taxation w/o representation.
I think there are special tax laws for actors and Hollyweird.
The state is 2 trillion in debt they can’t find enough pockets to pick slow death ensues.
Pelosi failed to pad bills with pork to bail out the blue states slow death spreads.
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