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 ...
Unconstitutional.
Plain and simple.
Violates the interstate commerce act. Further it provides for taxation without representation. You can’t tax someone who isn’t a California citizen, and as soon as another state recognizes them, they have rights and protections in another state.
Further, this means you could be taxed in multiple states, while residing in one. That is like indentured servitude or tax slavery.
Only stupid Democrats in California would think this would be Constitutional.
What is an income tax? A tax on labor? If slavery is an income tax rate of 100%, then any lesser amount is just a matter of degree.
Well, no
An income tax is a tax on income. Today, it is not really a tax on income of many, perhaps even most. The recent tax law severely reduced the income tax everybody pays because many actually don’t pay anything.
Since the income taxed for many is the result of business, investments and interest, that are all not functions of their direct labor, the claims of involuntary servitude are invalid
As a counter to the involuntary servitude argument, it could be argued that the tax on incomes is actually a privilege tax. that is, earners are being taxed for the priviledge of being Americans
To obtain the benefits of government citizens must pay for those benefits. Through their representatives, America has chosen to tax income
And... who gets to determine what that amount is? This sounds like the same "fair share" scam.
Yes it is taking of either labor or creativity. No business or investment would exist without first having human activity of some kind. And it is seized without consent.
Years the tax CA should change.
The income tax is by consent of the American citizenry acting through their elected representatives.
Under President Trump and Speaker Paul Ryan, severe revisions were made to the income tax laws. Speaker Ryan had the opportunity to scrap the income tax but chose not to. He knew there was no better system that would be acceptable to the citizenry.
That’s the tax CA should change.
Wait, they are essentially arguing that if you ever live and work 1 day in California the state has the right to confiscate your wealth for the rest of your life.
Amendment XIII Section 1. “Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.”
Amendment V “...nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”
They are trying to, as I understand it.
Exactly. California has no legal authority over residents of other states.
I have no problem with this, if these people voted Rat, why allow them to escape the consequences of their vote.
All of my wife's families save TWO have left CA for CO, UT, NV, WY, AZ, etc. My FIL/MIL and SIL are in CDA, ID. FIL and I got his gun collection out and he would have faced 1000 years in CA prison.
They sold their 1100 sq foot house in Ventura Co for 800k! They bought 2 years ago in CDA area of ID for 2500sq foot for 500k. Their real estate agent asked them if they would sell for 700k due to the fleeing Californians.
Anyways, the only two families left have kids in college and they plan of escaping soon. .
Summary: An ENTIRE family unit of about 20 households of Conservative, Christian, gun owners have FLED CA in the last 10 years....and the remainder will leave soon.
“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.”
I just love that feeble grasp on reality.
Really? It keeps people in the homes instead of being taxed out of it.
I would imagine, those billionaires have the most creative accountants in the world.
And what about new people who want to buy homes. They have to pay taxes based on current market values. Don’t they deserve the same low taxes?
Ridiculous policy.
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