Posted on 08/29/2020 10:50:49 PM PDT by aquila48
In the new bill is an introduction statement that the wealth tax is “for the benefit of accumulating excessive wealth in this state,” Globe contributor Chris Micheli reported.
Knowing about the huge outbound migration from California, Cavuto asked what would happen to wealthy people who move out of state. Bonta said tax “avoidance” would not be allowed as California would tax them for the next ten years, despite what state they live in. Bonta said that because they accrued the wealth in California, the state can continue to legally tax it.
“Tax avoidance,” with the primary purpose of reducing the valuation of a taxpayer’s worldwide net worth is required to be disregarded. “The bill authorizes the Franchise Tax Board to adopt regulations necessary to carry out these new statutory provisions including the valuation of certain assets that are not publicly traded,” Micheli said.
“AB 3088 requires the FTB to adopt regulation designed to prevent the avoidance or evasion of the wealth tax.”
Conversely, a billionaire who moves to California but acquired their wealth in another state, will still have to pay the proposed wealth tax for ten years.
“In California, we’ve had taxes on millionaires in the past. We raised taxes in 2012 by 3% — and the number of millionaires and billionaires in California has grown,” Bonta said. “We have 25% of the nation’s billionaires, 17% of the millionaires, those numbers are up and we’ve grown to be the fifth-largest economy in the world. So, while worthy of consideration it has not panned out.”
“Worldwide net worth under this bill would be calculated in the manner set for calculation of the federal estate tax pursuant to Chapter 11 of Subtitle B of the Internal Revenue Code (IRC) in effect on June 15, 2020,” Micheli said.
(Excerpt) Read more at californiaglobe.com ...
Don’t think that is allowed under federal law. They will not get a cent.
“Don’t think that is allowed under federal law. They will not get a cent.”
You would think that if the interstate commerce clause applies to anything it would certainly apply to this!
Why did they decide to stop after 10 years?
And can you imagine the magnitude of the Constitutional and tax law fight that these Marxist Democrat thieves would get ranging all the way to the SCOTUS?
This is true desperation from Newsom’s FAILED Democrat California government that cannot manage itself or pay its bills...so it wants to FURTHER steal your money.
We are going to see what is going to happen to Kalifornis
No way. They formerly did this with retirees who earned their pensions in CA and left the state. It was ruled in violation of the commerce clause iirc. Now, ex-resident retirees cannot have their pensions taxed by Kalifornia. By that precedent, ex-resident wealthy cannot be subject to a Kali wealth tax once out of the state. If they increase the tax rate, again, I’m leaving the state for a lower tax locale. It’s a damn shame, Kali has wonderful weather and vistas ; my friend and family live here too.
What the heck is “excessive wealth”
Lived in San Diego for three years. One of the most stunningly beautiful and pleasant places I've ever lived.
Problem was, it was filled with Californians.
If you’ve still got money left at the end of the month,
it’s excessive.
That old law was also struck down under “Taxation Without Representation”. Calif was demanding a tax & those people could NOT vote in Calif.
Try to enforce that, commies.
This is penalizing the First Amendment of Freedom of Speech and “Liberty” (to move around the country. No “Schutzpass” for Jews like the Nazis had, or the “ Juden” transportation passports the Soviets had for Jews and other citizens.
California, the “New Soviet Union” in the flesh.
These communists should just pass a law requiring all persons living anywhere in the US must pay CA income tax.
Because CA is a really cool place.
This is what happens when morons elect even more profoundly stupid morons.
No kidding...
Let’s say they were able to try this, and former residents don’t pay. How do they think they will collect? They are not the IRS. I suppose they could threaten to arrest you if you ever entered the state.
It is not constitutional, and they tried something similar before as was mentioned earlier.
They’d have to take it from me, cause NO WAY I would ever pay one cent !!!!
My brother thinks the California government isn’t so bad because the state has beaches and some decent sights. Yeah he’s not as bright as I once thought he was as I was little in some ways.
Your brother has made the physical land of California (which is beautiful) and the state government synonymous?
Yikes.
California’s attempt to curtail the spreading of cancer......given most of those morons bailing from California are wealthy Leftist DEMs who voted for decades for the cancer they are bailing from.......only to go to Nevada, Utah, Texas, etc. and continue to spread their cancer. Go figure. Have they learned anything? No. Doing the same thing over and over in the hopes of the results will be different = idiocy.
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