Tax-loving CA not done squeezing people even if they leave

Wednesday, August 19, 2020
 | 
Chris Woodward (OneNewsNow.com)

cash 100-dollar billCalifornia legislators are proposing a first-in-the nation state wealth tax in an effort to take more income from the heavily-taxed population.

The so-called California Wealth Tax, introduced by Assembly member Rob Bonta (D-Oakland) and others, would apply a 0.4 percent tax on the portion of a taxpayer's net worth that exceeds $30 million.

That would affect approximately 30,400 people if they haven’t fled the state already -- or technically even if they do.   

News outlets including Reason.com report that lawmakers are also attempting to tax the wealthy if they move out of California.

Williams

"The bill contains a special formula to apply to anybody who has lived in the state within the last 10 years,” writes Scott Shackford of Reason, “though the tax burden will slowly drop over time for each year they don't live in California.”

It’s pretty much a “certainty,” he adds, that former Californians will sue and fight such a law.

Jonathan Williams, an economist with the American Legislative Exchange Council (ALEC), tells OneNewsNow the legislation is terrible and the “epitome” of a bad tax policy.

"Already you have a situation in California where, I believe, the top one percent pays nearly half of the taxes in California,” he says. “And so this would just double down on that failed strategy where now more than 800,000 Americans on net, over the last decade alone, have picked up and voted with their feet and gone to one of the other 49 states."

According to Assembly member Bonta, the wealth tax is badly needed to help fund California's “vital needs like education, housing, health care, and other state services."

“In times of crisis,” he said in a press release, “all Californians must step up and contribute their fair share.”

A state ranking by USA Today found California does not lead any other state in one category of taxation but also concluded Californians spend 10.3 percent of their income on state and local states, leading most states. 

 

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