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Tuesday, Jan 26, 2021

Some California lawmakers want to impose wealth tax with far-reaching tentacles

Some California lawmakers want to impose wealth tax with far-reaching tentacles

A wealth tax proposal that was pushed this year would have applied up to a 0.4% tax on the amount of a state resident's net worth over $30 million dollars.
The exodus of some businesses and wealthy executives from California is not stopping some state lawmakers from supporting a wealth tax proposal in a state where Democratic Gov. Gavin Newsom is being targeted for recall.

A wealth tax proposal that was pushed this year would have applied up to a 0.4% tax on the amount of a state resident's net worth over $30 million dollars. The proposed bill, AB 2088, would have made those who spent more than 60 days in California in a year subject to some level of the wealth tax.

The amount of the person's wealth subject to the tax would depend on the amount of time spent in the state during the prior ten years. And under the proposal, even leaving the state would not free the taxpayer of the burden, because anyone who had been subject to the tax in the preceding ten years would still be subject to some level of the state wealth tax for up to 10 years.

State Senate Minority Leader Shannon Grove during an interview on the John Solomon Reports podcast said that the proposal failed but that it "is coming back this year." According to Law360, state legislators adjourned without advancing the legislation.

Grove, a Republican, said state Democrats will "try to say that if you generate any revenue in the state...that they can track you down in whatever other state you go to and they can tax you California state taxes for ten years after you leave."

And while some state lawmakers support slapping wealthy individuals with a wealth tax, some Californians are backing a push to recall Democratic Gov. Gavin Newsom.

"Unaffordable housing. Record homelessness. Rising crime. Failing schools. Independent contractors thrown out of work. Exploding pension debt. And now, a locked down population while the prisons are emptied. Hold Gavin Newsom accountable. Gavin Newsom must go," a recall website declares.
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