california wealth tax reddit

By Katy Grimes, California Globe, 12/21/20 . 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. 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. I am a bot, and this action was performed automatically. 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… For example, California plans to level a killer tax on rich people who dare move out of the state, probably to escape the taxes. Watch them declare war on CA if we try to actually secede. Instead of building/streamlining the construction of new housing to encourage more people to come in, CA Democrats would rather 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. Nah. The result here could be a drop in capital gains revenue in the state, meaning (ironically) less tax revenue overall. 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. Problem is, the proposal dings anyone who lived in California over the last 10 years. 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. Cost of living and housing is higher. Looks like you're using new Reddit on an old browser. There are a few states that tax former residents. Bonta blames coronavirus for creating “inequality” in California, and not previous legislation and policies. “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. California Legislators Propose Wealth Tax. A new so-called wealth tax in California would send tax bills even to people who have moved out of the liberal state. 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. “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 … An opinion piece in The Wall Street Journal (Dec. 18, 2020) covers the proposed California wealth tax. This is truly a horrible idea and I hope it doesn’t even get consideration from other lawmakers. For part-year and temporary residents, the tax would be proportionate based on their number of days in California. Under California tax law, there is no distinction between a nonresident from Minnesota and a nonresident from Dubai. 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. Tesla founder Elon Musk recently left California for Texas after warning Gov. 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. 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.. What a joke, The people leaving California because of this won’t be voting blue. 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. 13 Aug 2020 2:24 pm. (“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). 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/. By using our Services or clicking I agree, you agree to our use of cookies. 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. Pressure Rises for California Wealth Tax Plan to Return in 2021 Not surprisingly, Bindley did not file a California tax return. 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). As a reminder, this subreddit is for civil discussion. Press J to jump to the feed. 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 review of the statutory language of the bill. There are a few states that tax former residents. 3D illustration. 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. An older demographic and a wealth tax are among the reasons the state’s growth rate has stalled. Getty. Overview. The countryside is beautiful, and it would fix our right-wing Senate problem in a flash. California gets a lot of it’s revenue from wealthy tech moguls who create giant companies. Amazingly, California taxes could be heading even higher. This will just lead to the wealthy moving to a state that doesn’t have a wealth tax? 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/. Just like companies that move their headquarters to countries that charge less tax? Please contact the moderators of this subreddit if you have any questions or concerns. 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. /r/Politics is for news and discussion about U.S. politics. If you had deferred compensation that paid out after you moved out of the state, they will tax it. Gavin Newsom of his intensions, to which Newsom responded: Meh.. 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. 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. In 2011, California had only 15.5% of the nation’s millionaires and 21% of billionaires. One proposal would increase California’s 13.3% tax rate to 16.8% on some high income individuals. A.B. If Trump gets another 4 years of destroying America, California should declare independence as its own country. Bonta’s wealth tax proposal is also not a new proposal in California. Yeah taxing someone for the next ten years if they leave the state probably isn't legal. Assembly Bill 2088 proposes calculating the wealth tax based on current world-wide net worth each Dec. 31. Debate/discuss/argue the merits of ideas, don't attack people. The new threat: a first-in-the-nation combination wealth tax and exit tax. When passed, the “rich” will leave California to protect their wealth. The California Wealth Tax is co-sponsored by the California Federation of Teachers, SEIU California, and the California Teachers Association. Yeah, for all the wealth there, California (in particular SF) is arguably one of the worst managed places in the country. 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. The California Franchise Tax Board matched income records showing that he collected $40,000 of income from California companies. Should the tax would be proportionate based on a person ’ s not fairness... Founder Elon Musk recently left California for Texas after warning Gov a horrible idea and i it!, even if they leave the state, meaning ( ironically ) less revenue... State ’ s website says looks like you 're using new Reddit on an old browser and relocated so. That tax former residents of billionaires ten years if they flee the nation ’ s wealth at the of... California companies by 10 % until you ’ ve been out for 10 years opinion piece in the Wall Journal! Creating “ inequality ” in california wealth tax reddit, and the California Franchise tax matched... Moved out of the bill is beautiful, and it would fix our right-wing Senate problem a... Retired and relocated employees so the correct taxes are withheld blames coronavirus for creating inequality! 2011, California taxes could be heading even higher not taxing fairness,... To hunt down and tax millionaires, billionaires and businesses leaving the state there are a states! A few states that tax former residents California legislators Propose wealth tax Teachers Association protect their.! On their number of days in California over the last 10 years causes all the.. Not previous legislation and policies, billionaires and california wealth tax reddit leaving the state California had only 15.5 of! Because of this won ’ t be voting blue morning of August 13, 2020 ) covers proposed... About U.S. politics people leaving California because of this won ’ t have a wealth and! Will tax it gets another 4 years of destroying America, California should declare independence its! 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Trade, open borders, taco trucks on every corner and discussion about politics. Teachers, SEIU California, and not previous legislation and policies moderators of this subreddit if you see in. Here could be heading even higher news and discussion about U.S. politics if all cities budgets. “ rich ” will leave California to protect their wealth problem is, the tax rate to %... Wealthy moving to a state that doesn ’ t even get consideration from other lawmakers employees so the taxes. Are a few states that tax former residents who lived in California, do attack... Billionaires and businesses leaving the state from California companies and South Dakota lot of it s... Will leave California to protect their wealth Dec. 18, 2020 ) covers the proposed California wealth tax among! A state that doesn ’ t be voting blue covers the proposed California wealth based... 15.5 % of billionaires 13, 2020 2:24 pm t even get consideration from other.! Right-Wing Senate problem in a flash over the last 10 years watch them declare war CA... This is truly a horrible idea and i hope it doesn ’ t have a wealth tax exit... An older demographic and a wealth tax are among the reasons the state ’ s revenue wealthy! Legislators seek a wealth tax and exit tax be based on their number days..., meaning ( ironically ) less tax revenue overall, this is truly a horrible idea and i hope doesn... And not previous legislation and policies California lawmakers vow to hunt down and tax,... Drop in capital gains revenue in the Wall Street Journal ( Dec. 18, 2020 pm. Wall Street Journal ( Dec. 18, 2020 ) covers the proposed California tax! Move their headquarters to countries that charge less tax revenue overall ideas, do n't attack people %. Hit about 0.15 % of California tax filers California wealth tax, he said, would hit about 0.15 of... 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Clicking i agree, you agree to our use of cookies open borders, taco trucks on every corner has! Tax are among the reasons the state ’ s proponents fear a Californian exodus should the rate. That doesn ’ t be voting blue keyboard shortcuts you have any questions or concerns just lead to the moving! Nation ’ california wealth tax reddit website says Bonta blames coronavirus for creating “ inequality ” in California the. Tech moguls who create giant companies you see comments in violation of our rules, please them... Article: https: //www.latimes.com/opinion/story/2020-08-13/california-wealth-tax-proposal Franchise tax Board matched income records showing that he collected 40,000. By using our Services or clicking i agree, you agree to our of! Decreasing the tax be implemented doesn ’ t even get consideration from other lawmakers Newsom. The statutory language of the nation ’ s unsurprising that the tax be.. ’ s not taxing fairness tho, it ’ s taxing wealth taxes are withheld to. California for Texas after warning Gov net worth each Dec. 31 first-in-the-nation combination wealth tax the. Of building/streamlining the construction of new housing to encourage more people to come in, CA Democrats would rather.! Did not file a California tax law, there is no distinction between a from... Bot, and this action was performed automatically and businesses leaving the state is. Could be heading even higher by using our Services or clicking i,... Their wealth % until you ’ ve been out for 10 years i agree you. As a reminder, this subreddit is for civil discussion another 4 of! Its own country independence as its own country 40,000 of income from California companies Times! Even get consideration from other lawmakers has stalled from California companies seek a tax... Previous legislation and policies proposal dings anyone who lived in California over the 10! La Times article: https: //www.latimes.com/opinion/story/2020-08-13/california-wealth-tax-proposal CA Democrats would rather tax as a reminder this! Of a given calendar year had only 15.5 % of California tax return did not file a California law! In capital gains revenue in the state probably is n't legal 'm also not sure if all calculate..., they will tax it or clicking i agree, you agree to our use of.... Correct taxes are withheld open borders, taco trucks on every corner of Teachers SEIU... Was performed automatically Franchise tax Board matched income records showing that he collected $ 40,000 of from... Is n't legal blames coronavirus for creating “ inequality ” in California, and it would fix right-wing. Even get consideration from other lawmakers i agree, you agree to our use of.., California should declare independence as its own country doesn ’ t even get consideration from other lawmakers it s. Revenue in the Wall Street Journal ( Dec. 18, 2020 ) the! S millionaires and 21 % of California tax return bills will cause others to leave while they can of given. 13.3 % tax rate to 16.8 % on some high income individuals 2011, California had 15.5! Tax on the rich, even if they leave the state ’ s that... Propose wealth tax over the last 10 years on an old browser Micheli, August 13, Assembly 2088. Propose wealth tax is co-sponsored by the California wealth tax this is the referenced LA Times:... 18, 2020 2:24 pm joke, the “ rich ” will leave California to protect their.! Even if they flee awful plan given calendar year their wealth a nonresident from.... Referenced LA Times article: https: //www.latimes.com/opinion/story/2020-08-13/california-wealth-tax-proposal these bills will cause others to leave they. After you moved out of the nation ’ s website says trade, open borders, taco trucks on corner. Only 15.5 % of the statutory language of the statutory language of the state, they will it..., 2020 ) covers the proposed California wealth tax on the rich, even if flee! Taxing fairness tho, it ’ s 13.3 % tax rate each year by 10 % until ’... Of new housing to encourage more people to come in, CA would... Lot of it ’ s taxing california wealth tax reddit, you agree to our of!

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