Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

California Dems’ Wealth Tax Follows People Who Move Out of the State
California Globe ^ | August 17, 2020 | Katy Grimes

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 ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events; US: California
KEYWORDS: ab3088; adamschiff; botox; california; diannefeinstein; gavinnewsom; losangeles; madmaxine; maxinewaters; nancypelosi; richardcblum; sanfrancisco; sanfrannan; scaredschiffless; schiffforbrains; taxes
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-66 last
To: gcparent

At least they can prepare for them. People in older homes bought at a property tax they could afford.


61 posted on 08/30/2020 11:13:27 AM PDT by napscoordinator (Trump/Hunter, jr for President/Vice President 2016)
[ Post Reply | Private Reply | To 59 | View Replies]

To: yoe
They're mostly entertainment industry nitwits, with some tech entrepreneurs thrown in.

62 posted on 08/30/2020 11:20:54 AM PDT by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
[ Post Reply | Private Reply | To 58 | View Replies]

To: aquila48

California tried taxing retirees when they left the State. But they got knocked down because retirement plans are under federal rules.


63 posted on 08/30/2020 12:40:11 PM PDT by Rusty0604 (2020 four more years!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: cranked

most of theses people moved form somewhere else first,i still see out of state plates on the freeways


64 posted on 08/30/2020 1:20:23 PM PDT by markman46 (engage brain before using keyboard!!!at)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Herakles

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.


65 posted on 08/30/2020 1:29:04 PM PDT by 17th Miss Regt
[ Post Reply | Private Reply | To 2 | View Replies]

To: aquila48

appears to violate any the commerce clause


66 posted on 10/07/2020 8:36:25 AM PDT by bunkerhill7 (That`s 464 people per square foot! Is this corrrect?? It's NYC.)
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-66 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson