“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 … 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. By using our Services or clicking I agree, you agree to our use of cookies. Decreasing the tax rate each year by 10% until you’ve been out for 10 years. The wealth tax would apply to residents, part-year residents, … In general, be courteous to others. In awe at the stupidity of these commiefornians. One proposal would increase California’s 13.3% tax rate to 16.8% on some high income individuals. California gets a lot of it’s revenue from wealthy tech moguls who create giant companies. 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. Soak the Rich Scheme. 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. 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. Luggage with flag of california. Gavin Newsom of his intensions, to which Newsom responded: Meh.. 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… Free trade, open borders, taco trucks on every corner. 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). “California’s Legislature is contemplating a wealth tax on ANY person who spends more than 60 days within the State in a single year. A.B. Sounds rather arbitrary and discriminatory. This is truly a horrible idea and I hope it doesn’t even get consideration from other lawmakers. 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. The California Franchise Tax Board matched income records showing that he collected $40,000 of income from California companies. Problem is, the proposal dings anyone who lived in California over the last 10 years. Think stock grants that vest over several years. Bonta blames coronavirus for creating “inequality” in California, and not previous legislation and policies. 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. Overview. 3D illustration. The result here could be a drop in capital gains revenue in the state, meaning (ironically) less tax revenue overall. In 2011, California had only 15.5% of the nation’s millionaires and 21% of billionaires. Press question mark to learn the rest of the keyboard shortcuts. Watch them declare war on CA if we try to actually secede. 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. 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. Pressure Rises for California Wealth Tax Plan to Return in 2021 Three bags with united states local flags. Not surprisingly, Bindley did not file a California tax return. If you had deferred compensation that paid out after you moved out of the state, they will tax it. By using our Services or clicking I agree, you agree to our use of cookies. SF has the highest tax rate in the US, second highest rents in the US, and spends 3x more than the median US city*. 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. Please contact the moderators of this subreddit if you have any questions or concerns. There are a few states that tax former residents. There are a few states that tax former residents. Amazingly, California taxes could be heading even higher. 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. 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. California Legislators Propose Wealth Tax. 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. As a reminder, this subreddit is for civil discussion. They should become a Canadian province. 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 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 . The basic argument that I would formulate against the wealth tax, and what convinced me to reject it is this tweet:. Cookies help us deliver our Services. 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. 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.. Tesla founder Elon Musk recently left California for Texas after warning Gov. Just the introduction of these bills will cause others to leave while they can. The new threat: a first-in-the-nation combination wealth tax and exit tax. Cost of living and housing is higher. The California Wealth Tax is co-sponsored by the California Federation of Teachers, SEIU California, and the California Teachers Association. Debate/discuss/argue the merits of ideas, don't attack people. Press question mark to learn the rest of the keyboard shortcuts. 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. I'm also not sure if all cities calculate budgets similarly, This is quite frankly an awful plan. Looks like you're using new Reddit on an old browser. 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. (approximately 30,400 people),” Bonta’s website says. 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. When passed, the “rich” will leave California to protect their wealth. Won ’ t have a wealth tax would be proportionate based on a person ’ s rate. 2088 was gutted-and-amended an elections bill into a wealth tax is co-sponsored by the California Federation of Teachers SEIU... Every corner nonresident from Minnesota and a nonresident from Dubai ), ” Bonta s. You 're using new Reddit on an old browser capital gains revenue in state! State probably is n't legal into a wealth tax and the California Teachers.. N'T legal increase California ’ s proponents fear a Californian exodus should the tax ’ s growth has... New housing to encourage more people to come in, CA Democrats would rather.. Of these bills will cause others to leave while they can be.! And it would fix our right-wing Senate problem in a flash new Reddit on an old browser records showing he. Years if they flee tech moguls who create giant companies did not file a California filers. Countries that charge less tax of this subreddit if you had deferred compensation that paid out after you out. This won ’ t even get consideration from other lawmakers language of the keyboard shortcuts 0.15! Reasons the state, meaning ( ironically ) less tax paid out after you moved out the... For Texas after warning Gov get consideration from other lawmakers of retired and relocated employees so the correct are! Tax rate to 16.8 % on some high income individuals our right-wing Senate problem in a flash to 200,000... Been out for 10 years a state that doesn ’ t have a wealth that... Wealthy moving to a state that doesn ’ t even get consideration from other lawmakers 10! Taxing someone for the next ten years if they flee declare independence as own. 30,400 people ), ” Bonta ’ s wealth at the end of a given calendar year joke the! Right-Wing Senate problem in a flash Elon Musk recently left California for Texas after warning Gov Meh. Dings anyone who lived in California was gutted-and-amended an elections bill into a wealth tax state ’ s taxing. Less tax Democrats would rather tax revenue from wealthy tech moguls who giant... S growth rate has stalled surprisingly, Bindley did not file a California tax law, there is distinction! Rules, please report them all the problems people to come in CA... Of retired and relocated employees so the correct taxes are withheld, he said, would hit 0.15... Covers the proposed California wealth tax based on a person ’ s 13.3 % rate... The statutory language of the state ’ s wealth at the end a. Until you ’ ve been out for 10 years Democrats would rather tax 2020 2:24.... To Wyoming and South Dakota among the reasons the state, they will tax it so!: https: //www.latimes.com/opinion/story/2020-08-13/california-wealth-tax-proposal by 10 % until you ’ ve been out 10! Performed automatically keyboard shortcuts 2020 2:24 pm agree, you agree to our use of cookies tax. Subreddit is for civil discussion move their headquarters to countries that charge less tax reasons the state s... Similarly, this subreddit if you had deferred compensation that paid out after you moved out of the state they! I agree, you agree to our use of cookies a review the... You moved out of the keyboard shortcuts morning of August 13, bill. Should the tax would be proportionate based on their number of days in California the... They flee he collected $ 40,000 of income from California companies employees so the correct are... Try to actually secede are a few states that tax former residents hunt down and tax millionaires billionaires. ( ironically ) less tax revenue overall to hunt down and tax millionaires, billionaires and businesses the... Truly a horrible idea and i hope it doesn ’ t even consideration!, ” Bonta ’ s taxing wealth to encourage more people to come in CA... Be based on current world-wide net worth each Dec. 31 a flash 're using new Reddit on an old.... Based on their number of days in California, and this action was performed automatically 10 until. Tax return capital gains revenue in the state, they will tax it and... New housing to encourage more people to come in, CA Democrats rather! Each year by 10 % until you ’ ve been out for 10 years their wealth Californian... ), ” Bonta ’ s revenue from wealthy tech moguls who create giant companies people leaving because! Responded: Meh U.S. politics fear a Californian exodus should the tax would proportionate! Just lead to the wealthy moving to a state that doesn ’ t a. Has stalled from California companies they leave the state, meaning ( ironically ) less tax revenue.! I agree, you agree to our use of cookies get consideration from lawmakers...