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 ...
One dollar more than what you have.
It was called the “Source Tax”, claimed to be justified as the retirement had been earned in Kalifornia*.
Eventually struck down by act of congress, an act sponsored by Nevada Congresswoman Barbara Vucanovich.
Dingy Harry Reid claimed credit for it after Barbara retired!
Once retirees left Kalifornicate’ya they were outraged to see their checks diminished despite having no ability to vote, or representation, in Kali.
They made the outrage known to their new reps, who if nothing else were irate at the loss of spending/revenue for THEIR state.
So Kali lost that fight and will lose this even faster as THESE folk have the mean$ to fight harder and faster.
I would still recommend that anyone leaving Kali. remove their funds first, before they finally leave.
*Not necessarily true as some retirees transferred in from other states before retirement.
If this were true, then why do they feel the need to tax people who move out of state?
Weath that didn’t come from political means.
“Don’t think that is allowed under federal law. They will not get a cent.”
Several years ago a coworker who had never been to California and had never received money from or through California got a tax bill from California. When he called and explained it the clerk told him, “Look it’s only $500. You will pay many times that fighting it in court. Just pay it.” And, she hung up. I left the company shortly after and don’t know how it worked out. But, I think the clerk’s attitude perfectly reflects California’s attitude regarding taxes and the prols who have to pay them.
The courts will shut this down.
Imagine top notch pro sports athletes with contracts worth millions... They become free agents or get traded and go to teams outside CA. ...CA still wants to tax them for ten years on income they are making elsewhere.
Any judge that agrees with such illegal taxation should be hung!
Pro sports teams that travel to CA are also taxed on their income made during the games there.
Why haven’t the pro league lawyers filed suit to get that stopped due to the “taxation without representation” (not voting in CA)? ...Would seem to make sense.
The rich have many ways of sheltering their wealth. Use of LLCs is on method for real estate for example.
New Hampshire wanted to tax meals served at commissary at Portsmouth Navy Base, even though it’s in Maine, on the other side of the river. But name is “Portsmouth” and that city is in New Hampshire. New York City, unsurprisingly, wanted to tax the gift shop on Liberty Island even though it’s in New Jersey. The rationale was that passengers took the ferry from New York City, so the gift shop was an “extension” of New York City.
I always worried that the employer that I spent most of my career with would want to tax my pension and 401k regardless of where I domicile because I earned them in Massachusetts.
What the heck is “excessive wealth”
—
It means you saved a dime in your own name.
Tax-collectors are nothing if not imaginative.
Rest assured that they will find a way!
Did you perhaps leave any real property, bank accounts, or chattel in California? Are you perhaps expecting a little inheritance from a CA relative? Need a photostat of your CA birth certificate? Then they got yuh!
Regards,
“all persons living anywhere in the US must pay CA“ = prog states bailout proposal
The Harkles won’t care. But the Bank of Dad might.
The other 49 already do. To the tune of $400+ billion annually in federal aid to CA.
Do you get what this is? The “wealth tax” is taking a percentage of accumulated assets. Get it? Your savings, your investments, your property, your IRA, your house. They add it all up, and take some of it. Get it now?
Know what they’re going to do with it? Give it to non-producers. Read the posting here about California and “reparations.”
Understand now what the democrats are all about?
The 10 years are not up. They will extend it due to “unexpected” budget short falls in year 9 for an additional 10. At the end of that there will be “unexpected” shortfalls again and the cycle will repeat.
Every wealthy person in California who does not change his legal residence to elsewhere, is a fool.
You don’t even have to set foot in California if you do work for a company based there. They will still seek income taxes from you.
Cali doesn’t give a whoot of federal law. They have trashed the first and 2nd amendments. It’s a matter of time before the say goodbye to the USA.
A lot of people are doing ok in California because they still live under the property tax law that limits increase. If that ever goes away then their will be a ton of hurt.
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