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 ...
At least they can prepare for them. People in older homes bought at a property tax they could afford.
They're mostly entertainment industry nitwits, with some tech entrepreneurs thrown in.
California tried taxing retirees when they left the State. But they got knocked down because retirement plans are under federal rules.
most of theses people moved form somewhere else first,i still see out of state plates on the freeways
This was decided about 25 years ago by the Supreme Court. California used to tax the income of retirees in other states if the corporate offices were in California. The Supreme Court said no. They are trying this again but this time without a fig leaf of tax law structure, just a pure greed approach.
appears to violate any the commerce clause
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