The fortunes of the world’s richest people soared in 2020 even as the pandemic caused economic devastation, a stark trend that is reviving calls to tax all that new wealth… Please contact the moderators of this subreddit if you have any questions or concerns. As a reminder, this subreddit is for civil discussion. Cost of living and housing is higher. Cookies help us deliver our Services. Just like companies that move their headquarters to countries that charge less tax? In general, be courteous to others. When passed, the “rich” will leave California to protect their wealth. 3D illustration. What a joke, The people leaving California because of this won’t be voting blue. Yeah, for all the wealth there, California (in particular SF) is arguably one of the worst managed places in the country. This is truly a horrible idea and I hope it doesn’t even get consideration from other lawmakers. The Democrats’ proposal for “an annual tax of 0.4 percent upon the worldwide net worth of every resident in this state,” according to the text of AB 2088, which would create the tax on a vast list of untaxed assets California wants to tax. Please read the sidebar for more information. Under California tax law, there is no distinction between a nonresident from Minnesota and a nonresident from Dubai. The wealth tax would be based on a person’s wealth at the end of a given calendar year. If they did this, I could see a big wealth flight and lots of efforts to turn California red in order to get it reversed. In March 2019, Sen. Scott Wiener (D-San Francisco) announced he was authoring legislation to put a wealth estate tax on the California ballot in 2020 in order to create a new tax for wealthy Californians, California Globe reported . Gavin Newsom of his intensions, to which Newsom responded: Meh.. If we bet on a policy as aggressive as Warren's wealth tax, it'd become nearly impossible for ultra-successful entrepreneurs to maintain controlling stakes in their own companies over 1-2 decades. As a result, the wealth tax would include a ten-year exit tax, which essentially phases out the 0.4 percent wealth tax by 0.04 percent each year until ten years have passed since a former California resident has left the state.. Decreasing the tax rate each year by 10% until you’ve been out for 10 years. California Legislators Propose Wealth Tax. Cookies help us deliver our Services. “AB 2088 requires the Franchise Tax Board to adopt regulation designed to prevent the avoidance or evasion of the wealth tax.” The Wall Street Journal weighed in on just how punitive AB 2088: Assembly Bill 2088 proposes calculating the wealth tax based on … Property tax is lower than most other states (and they're a hell of a lot less volatile, for the good and bad that comes with that). It’s not taxing fairness tho, it’s taxing wealth. If you had deferred compensation that paid out after you moved out of the state, they will tax it. According to the state's Legislative Analyst's Office, people earning more than $1 million a year were responsible for almost 40 percent of the state's personal income tax revenue in 2015, though those same people account for only 19 percent of adjusted gross income in the state (see page 10 here for a graph). We can’t wait for the paper’s second edition published in 2025 when the “professor” finds that California has none of the US’ billionaires. By Chris Micheli, August 13, 2020 2:24 pm. I'd like to see 200,000 Californians move to Wyoming and South Dakota. The result here could be a drop in capital gains revenue in the state, meaning (ironically) less tax revenue overall. Think stock grants that vest over several years. This will just lead to the wealthy moving to a state that doesn’t have a wealth tax? There are a few states that tax former residents. Press J to jump to the feed. Despite Bonta's attempt to present the state's wealthiest as needing to contribute their "fair share," the reality is that California is exceedingly—perhaps even overly—dependent on its wealthiest for tax revenue. In 2011, California had only 15.5% of the nation’s millionaires and 21% of billionaires. Income tax … California seeks to increase it’s already stratospheric top 13.3% income tax to 16.8%, and the latest new tax the golden state wants to collect is a .4% wealth tax. Even though you don't get the money for years, they will claim it was earned while living in their state IIRC, it's CA, GA, NY, and, MN that do this. The bill, AB 2088, included wording that would make an individual or corporation who spent more than 60 days in California in any given year subject to some level of the wealth tax. Many other business owners before and after Musk have also fled the state’s high taxes and … Hewlett Packard is leaving the State. An opinion piece in The Wall Street Journal (Dec. 18, 2020) covers the proposed California wealth tax. The wealth tax would apply to residents, part-year residents, … Press question mark to learn the rest of the keyboard shortcuts. Bonta blames coronavirus for creating “inequality” in California, and not previous legislation and policies. The countryside is beautiful, and it would fix our right-wing Senate problem in a flash. /r/Politics is for news and discussion about U.S. politics. Press question mark to learn the rest of the keyboard shortcuts. Overview. The proposed tax would apply to not just wealthy residents, but anyone who is wealthy who has lived in the state for the last 10 years. Bonta’s wealth tax proposal is also not a new proposal in California. By Katy Grimes, California Globe, 12/21/20 . They should become a Canadian province. There are a few states that tax former residents. SACRAMENTO (CBS SF) — A bill proposed in the California State Assembly would, if passed, implement a wealth tax on California residents — … Total PITA to keep track of retired and relocated employees so the correct taxes are withheld. An older demographic and a wealth tax are among the reasons the state’s growth rate has stalled. I'm also not sure if all cities calculate budgets similarly, This is quite frankly an awful plan. California legislators want a wealth tax on the rich, even if they flee. California taxpayers may have even more on their plate to worry about besides a ballot initiative increasing property taxes, raising the top state income tax rate to 16.8 percent, and state tax collections this year that have run ahead of projections. The wealth tax would apply to residents, part-year residents, those spending more than 60 days in the state, and apply for the first 10 years for ex-Californians who have left the state. In awe at the stupidity of these commiefornians. Assembly Bill 2088 proposes calculating the wealth tax based on current world-wide net worth each Dec. 31. “Families are hurting right now. By using our Services or clicking I agree, you agree to our use of cookies. Over at the Los Angeles Times, Deputy Editorial Page Editor Jon Healey notes that this proposed wealth tax could have effects on capital gains taxes, especially if it encourages people to sell their assets at a loss to lower their tax burdens—and California extracts a significant amount of capital gains taxes from its wealthiest citizens. For those who have questions regarding any media outlets being posted on this subreddit, please click here to review our details as to our approved domains list and outlet criteria. Pressure Rises for California Wealth Tax Plan to Return in 2021 For example, California plans to level a killer tax on rich people who dare move out of the state, probably to escape the taxes. California lawmakers vow to hunt down and tax millionaires, billionaires and businesses leaving the state. SF has the highest tax rate in the US, second highest rents in the US, and spends 3x more than the median US city*. Debate/discuss/argue the merits of ideas, don't attack people. Looks like you're using new Reddit on an old browser. Despite Bonta's attempt to present the state's wealthiest as needing to contribute their "fair share," the reality is that California is exceedingly—perhaps even overly—dependent on its wealthiest for tax revenue. Another interesting tidbit from LA Times: It also would apply the highest wealth-tax rate to anyone who’d spent a decade or more in California, a bizarre choice that would only increase the incentive for longtime residents to move out. Luggage with flag of california. If Trump gets another 4 years of destroying America, California should declare independence as its own country. How viable is this in the state legislature? For part-year and temporary residents, the tax would be proportionate based on their number of days in California. Republicans say CA is a trash state and causes all the problems. The degree to which a person’s wealth would be subject to the tax would be determined by the amount of time he or she spent in the state during the prior ten years. (“Wealth Tax Act,” Bonita, AB 2088) The bill would impose a 0.4% tax on residents with a worldwide net worth in excess of $30,000,000 ($15,000,000 for a married taxpayer filing separately). California’s Legislature is considering a wealth tax on residents, part-year residents, and any person who spends more than 60 days inside the state’s borders in a single year. A.B. I believe something like this would only accelerate the exodus we are seeing already, with San Fransciso homes for sale up almost 100% this year on Zillow (a significant higher increase compared to other cities), See: https://sfist.com/2020/08/15/report-shows-record-increase-in-san-francisco-real-estate-listings-as-people-continue-moving-to-more-affordable-cities/. (approximately 30,400 people),” Bonta’s website says. Watch them declare war on CA if we try to actually secede. It’s kinda already happening, but it won’t weaken red states, it’s only giving them more weight in the electorate. I am a bot, and this action was performed automatically. Nah. California gets a lot of it’s revenue from wealthy tech moguls who create giant companies. Getty. On the table again in California is a wealth tax, AB 2088, and one which will follow any and all businesses that leave California for greener economic pastures. https://www.latimes.com/opinion/story/2020-08-13/california-wealth-tax-proposal, https://sfist.com/2020/08/15/report-shows-record-increase-in-san-francisco-real-estate-listings-as-people-continue-moving-to-more-affordable-cities/. Even though you don't get the money for years, they will claim it was earned while living in their state IIRC, it's CA, GA, NY, and, MN that do this. A California Plan to Chase Away the Rich, Then Keep Stalking Them A proposed wealth tax would apply for a decade to anyone who spends 60 days in the state in a single year. By using our Services or clicking I agree, you agree to our use of cookies. If you had deferred compensation that paid out after you moved out of the state, they will tax it. On the morning of August 13, Assembly Bill 2088 was gutted-and-amended an elections bill into a wealth tax. Problem is, the proposal dings anyone who lived in California over the last 10 years. California legislators seek a Wealth Tax that applies … Sounds rather arbitrary and discriminatory. “The California Wealth Tax (AB 2088 as amended) would apply a 0.4% tax on the portion of a taxpayer’s net worth that exceeds $30 million. A group of state lawmakers on Thursday proposed a first-in-the-nation state wealth tax that would hit about 30,400 California residents and raise an estimated $7.5 billion for the general fund. Just the introduction of these bills will cause others to leave while they can. Not surprisingly, Bindley did not file a California tax return. Yeah taxing someone for the next ten years if they leave the state probably isn't legal. The new threat: a first-in-the-nation combination wealth tax and exit tax. A bill proposed August 13 in the California Assembly would impose a new tax on high net worth individuals in the form of a wealth tax. The California Franchise Tax Board matched income records showing that he collected $40,000 of income from California companies. Amazingly, California taxes could be heading even higher. Therefore, it’s unsurprising that the tax’s proponents fear a Californian exodus should the tax be implemented. I believe this is the referenced LA Times article: https://www.latimes.com/opinion/story/2020-08-13/california-wealth-tax-proposal. The site may not work properly if you don't, If you do not update your browser, we suggest you visit, Press J to jump to the feed. A review of the statutory language of the bill. The new threat: a first-in-the-nation combination wealth tax and exit tax. Personal insults, shill or troll accusations, hate speech, any advocating or wishing death/physical harm, and other rule violations can result in a permanent ban. “California’s Legislature is contemplating a wealth tax on ANY person who spends more than 60 days within the State in a single year. If you see comments in violation of our rules, please report them. Instead of building/streamlining the construction of new housing to encourage more people to come in, CA Democrats would rather tax. Think stock grants that vest over several years. Free trade, open borders, taco trucks on every corner. Tesla founder Elon Musk recently left California for Texas after warning Gov. The California Wealth Tax is co-sponsored by the California Federation of Teachers, SEIU California, and the California Teachers Association. The proposed tax would apply to not just wealthy residents, but anyone who is wealthy who has lived in the state for the last 10 years. California taxpayers may have even more on their plate to worry about besides a ballot initiative increasing property taxes, raising the top state income tax rate to 16.8 percent, and state tax collections this year that have run ahead of projections. Three bags with united states local flags. One proposal would increase California’s 13.3% tax rate to 16.8% on some high income individuals. A new so-called wealth tax in California would send tax bills even to people who have moved out of the liberal state. The wealth tax, he said, would hit about 0.15% of California tax filers. Soak the Rich Scheme. The basic argument that I would formulate against the wealth tax, and what convinced me to reject it is this tweet:. Despite that spending and those high tax rates, they have terrible property crime, high amounts of homelessness, and underwhelming public schools, *Note: Saw those stats on twitter from someone credible, but I haven't done the leg work to verify the claims myself. 13 Aug 2020 2:24 pm. Whenever there's an article about a California lawmaker saying / doing something mindbogglingly dumb, 90% of the time it's Rob Bonta. U.S. politics from wealthy tech moguls who create giant companies California tax law, there is no distinction a. 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