Another similar bill, AB 1253, authored by Assemblyman Miguel Santiago (D-Los Angeles), would raise the tax percentage to high-income earners from 13.3% to as much as 16.8%. Prior to the Globe, he reported for the Pasadena Independent, the Cleveland Plain Dealer, and was head of the Personal Experiences section at Cracked. California Might Become the First State With a Wealth Tax The proposed legislation would impact nearly 30,400 Californians and raise $7.5 billion for the state’s general fund. ☎️ JOIN MY TEXT COMMUNITY FOR EXCLUSIVE CONTENT, GIVEAWAYS AND TO CONNECT WITH ME PERSONALLY! Wealth taxes may convince more Californians to leave, other states rapidly rivaling California on high taxes, politics, environment, By Evan Symon, September 29, 2020 2:37 am. “Now California is endangering a large tax base.”, “California expects to get more from higher taxes, but would miss out on them if they left. In 2011, California had only 15.5% of the nation’s millionaires and 21% of billionaires. They have that ten year tax part in there to scare people away, but honestly it may not even be enforceable, at least beyond one year.”, “Point is, wealthy people are beginning to look for the move, but it will likely create higher taxes wherever they go. Comment document.getElementById("comment").setAttribute( "id", "ade2736fc7f650115edc03743845ea31" );document.getElementById("d92dff301f").setAttribute( "id", "comment" ); Evan V. Symon is the Senior Editor for the California Globe. At the end of Army service, we located to Texas in 1993 with an infant child. The Midwest is becoming more red and the South is trickling in blue. “Avoidance,” asserts Bonta, “is not as simple as moving to another state. Florida is already seeing a large migration too.”, “As an MIT article recently said, California is almost uniquely equipped to deal with disasters in the future and could be a long-term safe spot.”, “So that just leaves political migration, and we’re seeing a huge shift right now. 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. AB1253 would add surcharges of 1% to incomes (joint or single) between roughly $1 million and $2 million, 3% on income between $2 million and $5 million, and 3.5% on income greater than $5 million, bringing the top rate to 16.8%. (Photo: lisadinotogroup). California’s legislature may justify a wealth tax as only affecting people who are so wealthy they don’t deserve sympathy. For example, California plans to level a killer tax on rich people who dare move out of the state, probably to escape the taxes. During the weekend, a new round of wealthy Californians, including Billionaire Jeffrey Gundlach, threatened to leave California should the new proposed wealth tax be passed, putting pressure on lawmakers who hope to pass the proposed bill next session. I don’t understand how this is legal or enforceable. “Now California is endangering a large tax base.”, “California expects to get more from higher taxes, but would miss out on them if they left. Here you'll find all collections you've created before. 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. — Jeffrey Gundlach (@TruthGundlach) September 26, 2020, “There are a lot of people leaving California, but up until this year it had been people who had been unable to afford the state or were upset with its policies,” demographics expert Ed Graves told the Globe. Exactly how are the progs going to enforce this, and under what legal theory is it possible to tax someone who has no assets or nexus in the state? Bonta said he would like to see a wealth tax passed in addition to the “millionaires tax” proposed in a bill introduced in late July. These proposals, as well as other factors such as wildfire threats, a continued economic shutdown, high living costs, and a Democratic controlled Assembly and Senate have made many prominent Californians consider leaving in recent months. Wealth tax proposals, wealthy Californians threaten to leave Assemblyman Rob Bonta. A proposal to raise taxes on California millionaires would result in a top tax rate of nearly 54% for federal and state taxes. California proposed a .4% annual wealth tax that applies to former residents who already left within the past 10 years, and to current residents for ten years after they leave. The California Wealth Tax is co-sponsored by the California Federation of Teachers, SEIU California, and the California Teachers Association. But in a state as big and broke as California, $7 billion per year is not enough. "),d=t;a[0]in d||!d.execScript||d.execScript("var "+a[0]);for(var e;a.length&&(e=a.shift());)a.length||void 0===c?d[e]?d=d[e]:d=d[e]={}:d[e]=c};function v(b){var c=b.length;if(0