You can check out but never leave
California’s proposed wealth tax, Bill 2028, would apply for a decade to anyone who spends 60 days in the state in a single year.
Here are the details.
- A 0.4% tax on residents with worldwide net worth greater than $ 30,000,000 ($ 15,000,000 for a married taxpayer filing separately).
- The proposed tax would apply to residents, part-year residents and temporary residents.
- Temporary residents are those who stay in the state for more than 60 days during the calendar year. For part-year and temporary residents, the tax would apply in proportion to the number of days they are in the state during the year.
- 10 Year Lookback Determination: The portion of a taxpayer’s property that is subject to property tax is multiplied by a fraction whose numerator is said to have been California residents for the previous 10 years, with 10 years being the denominator.
Stocks, options, bonds, cash, farms, in short, everything is covered, including unrealized gains.
The Wall Street Journal comments on a California plan to evict the rich and then pursue them.
California law considers a property tax for residents, part-year residents, and anyone who spends more than 60 days within state lines in a single year. Even those who move out of the state would be subject to tax for a decade more – a provision reminiscent of the Eagles’ famed “Hotel California” poetry: “You can check out anytime, but you can never leave. ”
The WSJ article appeared on December 18th, but I understand that by that time the bill had already died.
However, economic nonsense never stops.
Deja Vu: Another wealth tax law introduced
The California Globe reports on another property tax bill introduced by the congregation.
A new bill was introduced in the congregation this week to simultaneously increase corporate taxes, increase income taxes for citizens who earn more than $ 1 million a year, and remove the “loopholes” in corporate taxation.
Bill 71, jointly drafted by the members of the assembly Luz Rivas (D-Arleta) and David Chiu (D-San Francisco), aims to create a fund for solutions to homelessness known as the “Bring California Home Fund”.
To fund the program with at least $ 2.4 million, AB 71 would target corporation tax increases to historically high rates to create a more “progressive” corporation tax, and increase income tax for anyone in California over $ 1 million US dollars earned. Eliminate or limit corporate tax loopholes, including marginal choices of water, and non-realization of capital gains in the market and undo the increase in inherited base assets, thereby increasing the amount generated from capital gains.
“It’s absolutely insane,” Los Angeles-based financial advisor Richard Ritz told Globe. “For years we have seen wealthier people leave the state because of high taxes, most recently Elon Musk. Especially the Bay Area. “
“Many wealthy people saw this property tax proposal earlier this year as a trigger to move, and now many who stayed after its defeat see it as a trigger.”
“”Bring the California Home Fund“”
What a scream.
These ridiculous plans will do nothing but drive away the wealthy taxpayers.
AB 71 is humble compared to Bill 2028, but rest assured it wouldn’t stop there.
Progressive madness never stops.
A wealth tax may be legal at the state level, but would never pass a constitutional examination in the Supreme Court for those who left.
And yes, the rich would go. More companies would do that too.
- Elon Musk leaves California: When tech flees Silicon Valley, rents fall
- New York: Get out of New York if you can
- Illinois: Escape from Illinois: Get the hell out of now, we are
- Illinois: It takes 3 weeks to escape Illinois
These are the right answers to tax madness.