Assembly members Rob Bonta and Philip Y. Ting. (Photo: Kevin Sanders for California Globe)
California Dems’ Wealth Tax Follows People Who Move Out of the State
Tax ‘avoidance’ will not be allowed; it’s California’s money
By Katy Grimes, August 17, 2020 7:28 am
Assemblyman Rob Bonta (D-Oakland) made an appearance on “Cavuto: Coast to Coast” Friday to discuss his Wealth Tax proposal. Bonta told Cavuto the tax “affects about 0.15% of the California population — not the top 10%, not the top 1%, the top .15%, about 30,000 people.”
California Globe reported Bonta held a Zoom press conference Thursday announcing his legislation to tax the state’s wealthiest job creators and innovators – he claimed the “30,400 billionaires” living and working in California. (According to CNBC, there are only 630 billionaires in the entire United States.)
Bonta’s press conference was moderated by SEIU California, and not by his Capitol staff.
“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. (approximately 30,400 people),” Bonta’s website says.
Bonta blames coronavirus for creating “inequality” in California, and not previous legislation and policies. “Families are hurting right now. COVID-19 has only made matters worse,” Bonta said. “In times of crisis, all Californians must step up and contribute their fair share. Asking these well-resourced Californians to give a little more to keep our people working and support our most vulnerable is the right thing to do.”
This first-in-the-nation net worth tax is estimated to generate $7.5 billion per year in new “revenues” to the state coffers.
California has the highest tax rates in the nation. Bonta and Democrats want to force successful Californians to pay additional taxes on wealth and income that’s already been taxed.
‘Excessive Wealth’
In the new bill is an introduction statement that the wealth tax is “for the benefit of accumulating excessive wealth in this state,” Globe contributor Chris Micheli reported.
Knowing about the huge outbound migration from California, Cavuto asked what would happen to wealthy people who move out of state. Bonta said tax “avoidance” would not be allowed as California would tax them for the next ten years, despite what state they live in. Bonta said that because they accrued the wealth in California, the state can continue to legally tax it.
“Tax avoidance,” with the primary purpose of reducing the valuation of a taxpayer’s worldwide net worth is required to be disregarded. “The bill authorizes the Franchise Tax Board to adopt regulations necessary to carry out these new statutory provisions including the valuation of certain assets that are not publicly traded,” Micheli said.
“AB 3088 requires the FTB to adopt regulation designed to prevent the avoidance or evasion of the wealth tax.”
Conversely, a billionaire who moves to California but acquired their wealth in another state, will still have to pay the proposed wealth tax for ten years.
“In California, we’ve had taxes on millionaires in the past. We raised taxes in 2012 by 3% — and the number of millionaires and billionaires in California has grown,” Bonta said. “We have 25% of the nation’s billionaires, 17% of the millionaires, those numbers are up and we’ve grown to be the fifth-largest economy in the world. So, while worthy of consideration it has not panned out.”
“Worldwide net worth under this bill would be calculated in the manner set for calculation of the federal estate tax pursuant to Chapter 11 of Subtitle B of the Internal Revenue Code (IRC) in effect on June 15, 2020,” Micheli said. “The estate tax begins at Section 2011 of the IRC. Worldwide net worth is deemed to be the value of all worldwide property owned by the taxpayer on December 31 of each year.”
“In addition, any transaction with a primary purpose of reducing the valuation of a taxpayer’s worldwide net worth is required to be disregarded. The bill authorizes the Franchise Tax Board (FTB) to adopt regulations necessary to carry out these new statutory provisions including the valuation of certain assets that are not publicly traded.”
Why would any wealthy individual move to California? Bonta said people will always move into the state because, “It’s California.”
Former California Gov. Jerry Brown used to say wealthy people stay in California and even move to the state for the beautiful weather, despite the high cost of living and high taxes.
Over the weekend, Politico reported that Gov. Gavin Newsom appeared tepid on the tax: “I want to see where things go over the next couple of months,” Newsom said, including “what happens if this passes, what happens if this doesn’t pass?” Then he cautioned that a wealth tax, championed on the national level by the First Partner’s preferred presidential candidate, is a “national construct” that on the state level could affect “your ability to retain and attract talent, individuals, companies, and your competitiveness.”
AB 2088 is co-sponsored by the California Federation of Teachers, SEIU California, and the California Teachers Association.
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August 13, 2020 -
No wonder this mega-majority Dem legislature has been so on-fire for decriminalization efforts and freeing all the felons: They are protecting themselves! Crooked remorseless thieves that they are, they would be prosecuted and convicted and in prison now but for the lawlessness they themselves have promoted over the years.
Welcome to The Hotel California:
Last thing I remember
I was running for the door
I had to find the passage back
To the place I was before
“Relax”, said the night man
“We are programmed to receive
You can check out any time you like
But you can never leave”
We haven’t had that spirit here since 1969. Satan’s president appointed in LA.
Whaaaaat are you smoking?
Not enough to stay there.
Clearly you do not know the Eagles song….
It wasn’t the coronavirus that created the inequality, it was the politicians acting like fools and locking down the economy that seems to have about a .00767 mortality rate according to numbers from san Quintin prison and that most people don’t even have symptoms.
Careless spending and harsh regulation. Calif. Dem super majority….power corrupts! Absolute power corrupts absolutely as a current event!
Ha! I did leave in 2912 and have not set foot back in the state.
I’ve been predicting this would happen in states with large unfounded pension debts – that is, attempting to impose a tax on former residents who have left the state. I thought it would first happen in Illinois, but California has beat them to it. It should lead to a big legal fight as the tax probably can’t be imposed retroactively. Those who have accumulated wealth in California had no reason to anticipate an ex post facto tax, so they had no opportunity to leave the state before accumulating their wealth.
????????????
Gteat analogy!
Good luck with that California,..you’ve just incentivized the rich to get the hell out ASAP and you’ve secured your wealthy investor repellent for the future. Not to worry, the rich have their lawyers, and they’re damn good, you’ll be chasing ghosts from here to eternity before you see a dime.
Doesn’t this violate the U.S. Constitution? I don’t think the Constitution allows one state to tax the residents of another state.
I was an Army wife for 22 years. In 1980, I had my meager teacher wages taxed by: Massachusetts, the state my husband and I were from; Oklahoma, the state where I owrked for a few months, and North Carolina, where we movèd for my husband’s assignment after his Officer Advanced Course in Oklahoma….THREE STATES tàxed my wages!!,
You should thank your lucky stars you don’t work construction, I have payed 9 different states in 1 year.
That will make you a conservative real quick!!
You worked in those states. California is trying to tax people who move out of the state and no longer work in it for ten years.
It does leave one to wonder how they plan to enforce their law if a citizen moves to a more civilized state. If the new state decides to help California by collecting the tax and the citizen moves yet again, what then?
This should be good…
We can only hope that California requests extradition back to Cali.
These people are the sickness that is Cali. I don’t want them escaping and screwing up the rest of the country…
Perhaps congress would fund a wall up the Cali border to keep them in so the rest of the country isn’t infected with the Cali pandemic like Austin TX for instance.
Article I, Section 10 would seem to be pretty clear on that matter. Perhaps at one time, Article IV, Section 2 might have been interpreted as granting states a claim to escaped persons’ possessions and services, but that clause was repealed by the 13th Amendment.
You must pay income tax on income earned in another state. I don’t think they can get away with this without the courts rejecting it. Maybe a Democrat Congress will feel sorry for them and implement it. They certainly have Congressmen and Senators on board with taxing “excessive wealth.”
They have *already* paid income tax on that income. Now the state wants to levy another tax, on their total assets. Sorry, bye-eeee.
By the way, it’s not “first in the nation.” Florida was doing this around the millennium (they since repealed it) because retirees tended to have lot of wealth but negligible income.
And it’s not “California’s money,” you communist totalitarians — it belongs to the citizens who earned it.
Why yes it is! California is in “failing restaurant” mode. Decrease the size of portions, use inferior ingredients and raise prices. The liberals always think someone has more money they can take
Stupid is as stupid does….who cares! Stay in CA and pay the stupid people you elected.
Some issues they would run into include: ex post facto laws (unconstitutional for federal and state, specifically as it relates to a “wholly new tax” which the payer at the time of transaction, in this case, simply having wealth, would have reasonably expected to have been subject to taxation), proving that the wealth was “Californian Wealth”, conflict with interstate commerce (illegal restrictions on the transfer of ones own wealth across state borders), and then, of course, actually enforcing the law. Since the U.S. expects expats to pay taxes (FATCA) California might try to argue they are just doing the same for expats of California. However, domestic jurisdiction of states interfering with citizens of another state, e.g. a businessman transfers all his previously taxed wealth to another state, registers as a citizen this state, and severs all ties with California, is extremely limited compared to U.S./foreign relationships. State tax auditors go to great lengths to prevent people from faking residency in other states to ensure they pay “their fair share” but there is no precedent I can find where a person has legitimately cut ties with a state, and then a law is passed to tax citizens (and recently former citizens) which attempts to essentially rob the wealth of a citizen of another state. Essentially, this would imply that no wealth accumulated by a person is ever their wealth, but rather it belongs to the state and the state “allows” the person to keep a certain amount. Property taxes exist in this same status, however, property taxes or use taxes are usually directly related to either residency (a piece of land and improvements exist in a state, which cannot be removed) or to government registration (a car is titled and registered in a state). This would be like California attempting to have you register a license to have wealth, and tax it whether you park it in Nevada or California; and then if you decided to leave California and “register” your wealth in another state, so to speak, they continue to claim that the wealth is “titled” in California and they will not let you take it with you unless it is taxed. There is no legal framework for such actions by a state, and when people flee California, the state will have to sue expats in federal court to attempt to steal their money. This will have to be dealt with either by federal law or by the Supreme Court.
Shemp – thank you for your excellent summary. I would like to look at this further. Any suggestions on books or online resources? I’m not a lawyer…
You worked in those states. California is trying to tax people who move out of the state and no longer work in it for ten years. They have paid the taxes for their businesses, wages and property. This is robbery.
You are correct. The US Supreme Court has already decided cases against states attempting to tax non-residents.
Any States where the looters of burning down businesses now the state wants to tax these businesses that they’re refusing to protect. Insurance companies will not pay out if there is no please report. I just saw a video where this girl was complaining because the Boost Mobile store where there with AK47 to protect their store and how dare they cause she says they’re willing to kill her to protect their cheap stuff and she was going to the police to complain because she says her cousin is a homicide cop in Chicago. I wonder F after he loses his job because they D fund the Police F she will invite him over for dinner after costing him his job. It’s about the same thing for Amazon donating millions of dollars to black lives matter to have their stores looted in their him please harassed,Being told to move out of their houses and turn them over to the looters. This whole thing is falling in upon itself. In South Dakota the never close down.
Dude, you have to proofread. This is nonsense.
Raul…my thoughts exactly. There was some fun in trying to imagine the word or thought they were trying to convey and realizing their world is limited to a smart phone / small key pad.. Class participation trophy education vs being taught how to write a complete sentence.
If they get out now they can say the law is an ex post facto law directed at them for behavior which was legal at the time they left.
They’ve already been taxing the rest of the country with the federal aid they receive, so nothing new about taxing people in other states.
It really is THEFT and nothing else. Democrats govern and they pander so much, offering “free” stuff that they don’t have the budget to cover, so they are always looking for a new way to take additional money that IS NOT THEIRS.
It’s the old “Covet Thy Neighbor’s Goods”.
It’s no wonder so many on the Left are hostile to religion.
and NO! I AM NOT A ROBOT!
I’ve lived in California since 1980 and am getting ready to leave and take my money with me. Good luck illegal aliens and welfare groids.
I am a very rich conservative low end billionaire. You wrote welfare groids. People are always hating on blacks. Did you know that Asians in California receive the largest amount of welfare after the Hispanics? Blacks are basically non existent in California. The blacks left California many years ago. Percentage wise, Pacific Islanders have more people on welfare in California than blacks. There can be an explosion on the planet Mars and blacks will be blamed. The major damage to America has nothing to do with blacks. Blacks are basically killing each other in inner city America, but drugs coming from Mexico and Asia kills all Americans. Jesus is Lord. Peace.
I see blacks all over in California. You are wrong. Mexicans EVERYWHERE, but a heck of a lot of blacks too.
wherever you move to. be sure you don’t vote democrat
Imagine this for one moment…..A Californian who moves and settles in another state and DOESN’T vote Democrat!!! Too good to be true? Hate to tell ya straight up, but there are PLENTY of Californian’s that DON”T vote Demon-crat and are….wait for it…. ARE CONSERVATIVE TOO!
There are more conservatives in CA than in any other state.
Why would anyone live there – the liberals ruined Cali long ago. Next up, NYC.
)It’s such a shame. I live in San Antonio, TX and I would LOVE to move for Northern California for about a year since I CANNOT stand the weather in Texas. Why does California, which is one of the PRETTIEST states in the Nation have SO MANY TROUBLES! It totally makes me sad…Now I don’t know what I want to do….SUCKS!!!
The damage is done with this article publicized on Drudge. If you are a billionaire, it would cost you a cool $30 million to move to California. This is $300 million out of Zuckerberg’s hide.
we drink billionaire tears
we don’t need billionaires. last time a billionaire saved me or anyone i know from financial ruin. never! last time i saved them, 2008! billionaire tears here! get your billionaire tears.
So if I, being from Florida, move to California, my concealed carry permit will be good for the next 10 years because, after all, I earned it out of state…
Me, I’d prefer they start with all the UC and CSU faculty and staff who reap Gray Davis’ excessive taxpayer-funded pensions and promptly move to Nevada to avoid having to pay anything back.
Don’t be surprised is thousands more move to beautiful and exciting Nevada. Zero state income tax and we don’t mess around with crime or criminals. Ask OJ Simpson. Good luck dealing the California Franchise Tax Board. Who needs that in your life.
Sign the recall for Newsom
California Spent $25 Million Trying to Tax a Man $13 Million After He Moved Out of California
https://youtu.be/rfyPZdSBwBQ
https://twitter.com/bkwilless/status/1295469273532383232
Billionaire can live in any country they choose and not pay a cent in taxes to California.
I have not read this bill, but based on your post I suspect that lawyers are exempt from this proposed wealth tax.
10 years back my good friends left Cali for good and moved to Utah. They did this over a couple of years as they fixed their new place up and slowly moved items including vehicles.
Even though their show truck at been in Utah for over a year Cali said they still had to pay registration on it. I know for a fact it was in Utah because I helped load it on the trailer.
When they refused to pay Cali deducted it from their last state income return.
Sam Axe, glad to have your verification of what CA is doing to people who MOVE the heck out of here to another STATE, for crying out loud! It’s just incredible that this long arm has not somehow been cut off in the meantime from being able to do this, although I’m sure there have been attempts?
Give Cali some payback…with today’s cheap electronics it’s not hard to build a timer controlled incendiary device.
Now just hide it on state forest land and set it to ignite in a couple of months…it will cost the state millions to fight the fires…help bankrupt them.
Sounds like a good way to go to jail. Or possibly hurt someone.
Supposed some California firefighters are killed in your fire?
That’s why you always manage your W4 so you owe them money. That puts you more in charge of what you pay and they can’t deduct it from a return.
Just relocating a vehicle isn’t enough. The owner has to complete the process to notify the state that the vehicle has been registered in another state. A lot of people have had this problem – and won, by following the proper procedure.
CA played the same game with me and most of the CA ex-pats that I personally know living here in Nevada. Told them I was not a commercial driver (didn’t have a chauffeur’s license) and my tax attorney said I didn’t have to register in both NV and CA (true fact but a bluff). CA official acknowledged that CA dual registration was optional.
You need to change vehicle registration to Utah. Then you would pay Utah reg. Rather than Cali reg.
2020: California’s State legislature is promoting slavery / serfdom. In 1862, Abraham Lincoln ended slavery in USA with Proclamation 95. Since when is slavery or serfdom allowed to be promoted?
Did you ever hear of lifelong alimony? That is a real thing in ohio. I just heard about it last month. That is indentured servitude as well.
slavery and serfdom by the 1% (top tenth of 1%) is no less alluring! billionaire tears! come get your billionaire tears!
Bill Clinton got people to believe he wouldn’t tax anyone below $250,000. Turned into $30,000 the day his taxes were implemented. Obama PROMISED everyone $2,500 off their medical insurance. How many people trust a promise to keep taxes only on the “rich”?
The other states where rich folks might move to and which have their own income tax might take issue with CA taxing their new residents.
leap to the defense of tax evaders? sounds like a republican plan to me!
Tax avoidance isn’t tax evasion. Leaving the state, legitimately, is tax avoidance. California has zero basis to tax someone who leaves the state. Zero. They have no way to enforce the law either. This idea is crazy and desperate.
There’s a difference between wealth tax and income tax.
BTW, nice article (as usual!), Katy. Appreciate the details not in other reports. Thanks!
I wonder if this law might be challenged as an infringement upon the right to interstate travel, using the same rationale as in Shapiro v. Thompson, which struck down residency requirements for those who travel to states to take advantage of their welfare benefits.
Roberts will vote for it!
The message is to get out before they pass the tax.
I wonder if Nancy Pelosi will leave?
Or Tom Steyer, come to think of it.
Where will Nancy be in a decade? Her grandchildren will move.
Dead, I hope.
“’In California, we’ve had taxes on millionaires in the past. We raised taxes in 2012 by 3% — and the number of millionaires and billionaires in California has grown,” Bonta said.'”
It sounds like this guy doesn’t even understand the difference between *income* and *net worth*. (?)
Loudest sentence in the related San Francisco Chronicle article (emphasis added):
“He admitted that the **union-sponsored** bill…”
https://www.sfchronicle.com/business/networth/article/California-lawmakers-propose-a-15482011.php
Public employee unions must be abolished. They are destroying this state.
No it’s not the public employee unions that’s the problem. California wastes 30 billion with a B on illegals annually. That’s the real problem!
“AB 2088 is co-sponsored by the California Federation of Teachers, SEIU California, and the California Teachers Association.”~Katy Grimes
Ya know it looks like collusion to me! These unions run the state, fund the politicians and steal your hard earned money, all the while indoctrinating your children!
Please wake up voters before it is too late!
Sounds like Rhode Island!!! Another democrat controlled nightmare state.
All great comments here!
What is glaring to me it is the abuse of power!
The great California weather is becoming less attractive to me, especially when there is a greater storm brewing all around us blowing out of Sacramento.
My heart breaks for this once great state. Watch where you walk!
I left California back in 1997 because of the awful things they were doing to the citizens. Nice to see that 23 years later they are still doing it. Remember back years ago California would tax you retirement regardless of where you moved. Once upon a time in a great land the liberals took over, no one has been happy or free since. Once upon a time the government worked for the people and derive their power from the people. Now the people work for the government and the government dictates to the people because the people don’t have any power.
Doubt it would stand the scrutiny of the coming Trump Supreme Court.
Once you move out of Cali it becomes taxation without representation……just sayin’.
@BG, Great point!
It’s already taxation without representation all across the USA. The grifters in congress don’t represent the people who vote for them, they only act at the behest of the corporations and wealthy globalists who bribe, err, I mean “donate” to them.
Any millionaire/billionaire who does not pick up and leave NOW is a fool. Not sure how legally their attempt to hold HOSTAGE the wealthy would stand-up in court as any money they have already earned they paid TAXES ON. Note there is nothing said about perhaps reducing the size of bureaucracy, the hand-outs, the corruption, the state employee unions very generous benefits….Nah, why should GOVT cut back when we can fleece the hard-working men and women or the wealthy. This is what the US will get if Biden/Harris get elected!
OK. People are leaving CA in droves, because of lawless cities, tolerance for filth and refuse, and high taxes. Oh yeah, crime, too. So you want to incentivize them to leave, AND not to come there in the first place. Ah, smart. And you claim that you’re dumb enough think that people will still come? Congratulations, you may have just broken the dam, broken the surface tension that keeps people in the state. The ultra rich will leave, as a class, then your tax base takes a hit. You’ll raise it again on the lower earners, but more on the next level of rich, then they leave, etc. Good job. You’ve figured out how reverse migration into your state.
I left California back in 1997 because of the awful things they were doing to the citizens. Nice to see that 23 years later they are still doing it. Remember back years ago California would tax you retirement regardless of where you moved. Once upon a time in a great land the liberals took over, no one has been happy or free since. Once upon a time the government worked for the people and derive their power from the people. Now the people work for the government and the government dictates to the people because the people don’t have any power.
Important move. There are millions of new unemployed residents who will be coming in to California from Mexico, Central and South America and elsewhere who are going to need this tax money for food, shelter, healthcare, social work intervention, transportation and education.
Tough luck for them. Send this article to residents of Mexico, Central & South America so they know they know there’s no pot of gold in California anymore.
“They need that money”, my eye. It’s not their damn money!
You forgot the most important word . . . “free.”
“because, “It’s California.””
That logic might have flown in 1960 or earlier, but it’s delusional today…
Beware folks, this is only the opening salvo & these clueless a-holes that have ZERO business experience are only going to realize that they have to cast an ever-widening net as they chase out their target cohort….
First it’s this group, then they’ll go after lower & lower asset thresholds….
You’re next….
I left California back in 1981. Now I don’t even like to go back for a visit. Made some bad decisions in my life but getting out of California wasn’t one of them. As far as “ people will move here because of the weather “ let’s face it California is more of a state of mind and has been for over 60 years. Now only delusional people or total dead beats looking for free stuff will move there now. Good riddance Cali.
I seriously doubt it’s constitutional to demand taxes of people who establish legal residence elsewhere.
DO NOT VOTE FOR ANY DEMOCRAT THIS NOVEMBER…
They are NOT your friends… Do NOT believe all the gauzy television commercials talking about “the children” & all the benefits from their proposals and candidates…
The current Democrat party is a cancer on society that needs to be removed…
You’re right: VOTE DEMOCRATS OUT!
California does not have jurisdiction to tax people living out of state. Otherwise they could just tax everyone in the country. Not that libs on SCOTUS care.
YES! Tell the world, and soon they will bJosephelieve it too!
the nazi’s did the same thing; if you wanted to leave they taxed you… of everything you had.
Nothing like giving people a heads up. Assets are being moved out of state as we speak. They think it will generate 7.5 billion. Ask both NY and CT how well their upper tax rate increase worked out. People who make and acquire that much money are for from stupid and will do anything to keep their assets away from over greedy California Pols.
Democrats lying about how many billionaires there are in the state to get a wealth tax passed. This is SOP here in the state. This tax on people with 15 million in assets is probably mostly aimed at farmers who have lots of land but little income.
How about inflation?
A VW Golf sells for 336 MILLION bolivars in Venezuela. (30 years ago a bolivar was worth roughly a U.S. Dollar).
I wonder how many Californians who think they are reaching into someone else’s pocket will suddenly find a hand in their own when the dollar plummets and a few million dollars aren’t what they used to be.
I guess what I have never understood is how did state employees become a protected class of citizen.
I really cannot say my life would be any worse if 200,000 of them were invited to join the private sector tomorrow. I get it that in exchange for their holding certain really really dull jobs that they get job security, but it is pretty clear that their job security is harming all the rest of us. Will it ever balance out?
The “United States” is a Crown Corporation originating out of the City of London which holds ALL COMMERCIAL INTEREST of the Vatican. The previous Crown assets known as the 13 Independent Colonies (instituted into creation via the East India Company) went bankrupt after the Revolutionary War, so the City of London created a new commercial entity called “THE UNITED STATES” to absorb and “write off” the previous bankrupted British assets (13 independent States/Colonies) and start anew. EVERYTHING IN THIS REALM IS A CORPORATE CREATION, ruled under ADMIRALTY LAW (law of the Sea) we’ve been lifted off the LAND and onto a “VESSEL” known as your Strawman under 14th Amendment “Citizenry” (we’re all bonded slaves) to a CORPORATE FICTION
your comment sounds like the most rational one i have read yet.
i would like to know where to get more information on this.
thannk you
This guy is an amazing f-tw*t. It affects the top .15% of taxpayers. but guess what, that .15% affect a whole lot of other californians. they move, and guess what happens to a whole lot of other taxpayers, and those that remain will have to share in an increasingly large burden.
Screw these guys. Never voting D again.
My wife and I are not even close to the “current” threshold for this tax, but every day on the freeways I see dozens of brand new Highway patrol cars with new “fund raiser” customers. I think the California plan is to do like the kings of England did in days of old and send highly armed soldiers to collect the kings money. Back then you had better either have the kings gold or your daughters.
I never speed and obay the road laws to the best I can but I bet they will finally get me for something IF I stay lonng enough.
Every day I seen fund raisers on our freeways. Not saying all do not deserve, but how many will they hire?
Please stay in California. We don’t want your self-destructive voting habits. I’m all for this tax. It will motivate people to stay in California
Wow they must be reading Atlas Shrugged for tips on how to destroy their State.
Atlas Shrugged? They have yet to read The Goose Who Laid the Golden Eggs
Or “The Boy Who Cried Wolf” or “The Emperor’s New Clothes”
The left is abusing a whole lot of cautionary literature as instruction manuals these days. Atlas Shrugged, 1984, Being There, The Ant and the Grasshopper, Lord of the Flies…
Liberal states are creating conditions to drive people out of their states, knowing they won’t lose enough to also lose their precious majority. And for what purpose? To filer them into purple states. Do the math.
taxing someone after they leave the state is TAXATION WITHOUT REPRESENTATION. it also implies that individuals are property of the state which is exactly how Marxists truly feel .
We the people of the cornhusker state, would be glad to receive settlers from other states! We’re putting forth a planed moratorium on first time home buyers too live bill free for a year in the homestead act.
Speak for yourself, a Fellow Cornhusker
This guy Bonta must be on drugs..
If this ever sees the light of day, the US Supreme court will slap this down as they did years ago on social security and interest if you leave California…..
California has no right to any asset’s one owns and no one is required to tell the state zip about where their wealth is or what it is….
California will lose billionaires and millionaires by the goobs. …
It’s gonna be fun to watch….
This guy bonta and yip….both will find themselves in a bread line and out of work….
You don’t understand California. If you are out of work, better yet illegal or a felon, you get free everything. They will even put you up in a hotel for free if you don’t have a place to live.
About 15 or 20 years ago, the Norwegians passed a confiscatory law, similar to this one, that was aimed at the only Billionaire in Norway. The Norwegian politicians said the same thing; “Where’s he going to go? He won’t leave.” Well, about 20 seconds passed before the guy renounced his citizenship and was on his jet to Switzerland.
your comment sounds like the most rational one i have read yet.
i would like to know where to get more information on this.
thannk you
What a mess! California deserves better leadership. As if running all the millionaires and billionaires off won’t be bad enough, they also have no plan to fix the power grid. All the green energy requirements are causing dangerous rolling blackouts in record heat. If anyone dies as a result they will just classify it as Covid and move on.
Why would you think they “deserve” better leadership? They VOTED for the fools that are running things just the way they want it run. Just like the democrats that cheer when Biden says that if he is elected everyone will wear masks EVERYWHERE. In their yards, while jogging, in their homes… stupid people vote for stupid people… it is axiomatic.
This is not because of Coronavirus. They released the text of the bill in *early February*
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB2088
Get out while you can. Starve the liberal thieves!
Wow. “It’s California’s money.”
The totalitarian left strikes again. its about power and wealth redistribution at the expense of individual liberty and hard work
California is becoming a Pariah state where you would have to be out of your mind to live, do business or even visit as the totalitarian Marxists are going to find a way to victimize you. Sort of like the Hotel California where you check out any time your like but you can never leave.
Oh man you said it the best. The folks who run the state are simply insane
I gotta say. California is run by some very odd people. Now I don’t blame the Californians moving out cause they have had enough. Just don’t bring your same way of thinking to our states. Your state is failing from
Democratic rule make no mistake about it.
I gotta say. California is run by some very odd people. Now I don’t blame the Californians moving out cause they have had enough. Just don’t bring your same way of thinking to our states. Your state is failing from
Democratic rule make no mistake about it.
If you think that only the very rich will be “paying their fair share” wait until your political overlords run through whatever funds this initial trip to the well produces. Soon wealth will be redefined to include anyone with a net worth of ten million, then redefined to include those who own a house worth more than two million. D\There is not enough wealth in California to sate their appetite for more and the definition of wealth will be dumbed down until this tax is universal. The income tax followed the same trajectory.
With the likes of John Roberts on the Supreme Court, this will fly…
Tax the Kardashians out of our lives please.
If people have already paid yearly taxes on earnings, sales of stock and property, etc. and capital gains, etc. I don’t think they can be taxed again on wealth that has already been taxed State and Fed. How is that possible or legal. How is it “tax avoidance” when you have already paid the taxes on the wealth. And also, if you moved, any “future” wealth gained on the wealth (originally from CA) would be earned in that new residence State (and would be taxed there in the new State.) This just doesn’t make sense.
So I guess the state worked and earned the money, since they say it is theirs. Please people fleeing that mad house , don’t bring your terrible politics with you!
Free and independent cities and states welcome legal immigrants who are law abiding and self-reliant. But if you leave CA, NYC or other regressive cities or states, please leave your liberal ideas where you came from. Don’t try to change where you are going into where you are escaping.
Lol if it only affects that many people it won’t even raise that much money but you will surely be doing a ton of damage to the businesses that these people likely own. So stupid. So glad I don’t live in one of these states.
It’s easy to see that the few billion in new revenue will be quickly eaten up by litigation and enforcement costs. Then they’ll have to lower the taxable valuation level and raise the percentages and start again. This is an economic death spiral.
The rich should just vote with their feet. Not only will California not get their wealth tax, they will lose their income tax as well. Trying to tax them for ten years after they leave because they ‘accumulated’ the wealth in California will not pass legal muster. That is effectively a retroactive tax law which is unconstitutional – the same way that New York can’t tax a Florida retiree’s pension because they earned it in New York. Good luck trying to get Florida or Texas to help you collect. Never going to happen. The first court challenge will but an end to it.
The rich should just vote with their feet. Not only will California not get their wealth tax, they will lose their income tax as well. Trying to tax them for ten years after they leave because they ‘accumulated’ the wealth in California will not pass legal muster. That is effectively a retroactive tax law which is unconstitutional – the same way that New York can’t tax a Florida retiree’s pension because they earned it in New York. Good luck trying to get Florida or Texas to help you collect. Never going to happen. The first court challenge will but an end to it.
Whatever the eff these morons are smoking… I want some!
So this new confiscatory tax, on monies and property that has already been taxed, is estimated to raise 7.5 billion in new revenue?! BFD!! That won’t even come close to solving Klownifornika’s deficit spending problems!!
Take for instance governor Moonbeam’s legacy of the bullet train to nowhere which no one really wanted anyway. The last estimated cost to complete Phase I was $80.3 BILLION dollars!! And it will never be completed in my lifetime while the costs keep going ever higher!
This bill amounts to nothing more than state sponsored theft!! And just look at who is co-sponsoring the bill. Why it’s the teacher’s union(s) and the Service Employees International Union!!!
We once fought a war and became a nation because of this sort of thing. Perhaps it’s time to rise up again?
DemocRATs are determined to destroy California by scaring away all the taxpayers. The more you have the more they want from you. Financial vampires. Plain and simple.
I wonder if these economic illiterates have heard the story of the goose that laid the golden eggs?
Stupidcrats are ruining this state and continue to do so. We will be the next New York.
Demoncrats are all the same. Tax and spend then tax some more. Everyone in California needs to stay home and let ” the government ” feed and house them. 100% of nothing is nothing. Never expect anything from those morons but higher taxes and fewer services for working people. If you ever vote for a Demoncrat you deserve what you get,plane and simple so bend over and take it like a man !!!
I thought double taxation was illegal in the U.S.?
Very good point. Ultimately people will end up with the government they deserve. If you believe that corrupt politicians are okay especially if they provide you with other people’s wealth and you continue to vote for them, your government will become more and more corrupt just like the majority of its voters. You may believe that all wealthy people are evil and all poor people are good but that kind of thinking impoverishes everyone. Marxists believe in the equal distribution of wealth. What they totally oppose is the generation of wealth. The poor of our nation live far better than most of the citizens in Communist countries and our poor have freedoms
that are the envy of the world. So what is more important? What do these politicians in California really want to take away? “Give me Liberty or give me Death” Those patriots knew exactly what was the most valuable possession. Anyone can earn some money but only free people can build their own wealth for themselves and their families. The destruction of personal wealth and families is a number one Marxist goal. Look it up.
What is even more insidious about this scheme is that the California politicians know very well that these millionaires and billionaires who meet California’s threshold to be illegally taxed don’t typically have hundreds of millions of dollars lying around in bank accounts. So Mark Zuckerberg, at about $96 billion in net worth, would be taxed about $384 million…EACH YEAR FOR 10 YEARS, presuming his net worth didn’t change.
Since it is highly doubtful that he has that money lying around, he will need to sell roughly $400 million of stock, which now becomes taxable capital gains at the new rate of 16.8% !!! So he would have to pay $67 million in capital gains tax in addition to the $384 million each year, for an annual total of $451 million each year, or about $4.5 BILLION over the 10 year period.
If California would like to come collect over here in Arizona, good luck. We shoot first.
Not to worry… Democraps will not be in power after the upcoming election…
For my little illegal alien Brothers welcome to California. You get to have a driver’s license but do not have to buy insurance because the millionaires and billionaires will pay for your insurance and your health care and school for your little brown anchor babies.
“Bonta said that because they accrued the wealth in California, the state can continue to legally tax it.”
What a load of crap. They’ve paid tax on it once already.
No other state in the country is going to acknowledge their right to do that. At that point, what keeps some other state, like WA State from saying, “Mr. Arizona resident, you used to live here 4 years ago, but we’re still going to tax your income because you used to live here and we need your money.”?
No other state is going to allow California to remove money from their tax base.
What’s going to happen, is that people are going to leave California in droves, to states like WA, OR, AZ, TX and then try and make the “progressive”, just like California. Why sure! Come on in! Move from the shithole you’re leaving and make our state/country just like the one you left. Makes PERFECT f***ing sense!
The rich still might leave as they may find it easier to do business out of state than in the state. There are too many regulations in California.
Not all California’s voted for these morons. I voted for conservative candidates. My husband and I work hard for our money and we don’t agree with giving it away to people who just throw it away to causes that are a sink hole. I want to move but it looks like people from other states seem to think Californias are all the same.
Not “give a little more”, steal more from those who successful and create jobs. The whole idea is unconstitutional as once a person leaves California residency, their personal tax liability stops cold. They tried this nonsense with California pensioners years ago, and it was thrown out by the US Supreme Court. As far as I care, there is no way this state can dig (or tax) it’s way to become sustainable. entity. It’s done! It’s more than time to declare the state insolvency and wipe out all the burdensome union contracts and other obligations the moronic politicians have signed.
My Folsom house is currently pending sale in NorCal as of 9/1/2020. I’ve made some money on California real estate sales but I’m not a millionaire….not even close. Just a retired military veteran who honorably served this great country over 28 years in uniform. I’ve lived in Cali 24 years total and now it’s time to say “adios comrades”. My retirement pension can’t take another financial hit on increased water bills, propane fuel costs & property tax increases. Billionaires like Mark Zuckerberg, Oprah Winfrey, Ellen DeGeneres & Tyler Perry will stay in California. While local businesses who serve them are permanently closing or relocating to other states in record numbers! And guess who Governor Newsom is going to come after next? Ding, ding, ding…residential property owners! Newsom tried several times to convince former Governor Jerry Brown to eliminate Prop 13 for residential property owners. And you know Newsom will just do it to keep his “freebie” political promises & the migrant floodgates wide open so Democrats remain in political power at the local & state levels. Enjoy your property tax increases! You Democrats voted for it. Only the rich & woke are now trying to escape taxation without representation in Communist run California.
The U.S. Supreme Court in Crandall v. Nevada, 73 U.S. 35 (1868) declared that freedom of movement is a fundamental right and therefore a state cannot inhibit people from leaving the state by taxing them.
california is violating the constitution of the united states
The revenue generated by the higher tax rates will be immediately eaten up to support the millions of illegal aliens so loved by NEWSOME and the DEMOCRATS in MEXICALIFORNIA. He has described them as “our undocumented residents”.
It has been following so many people who have been moving out of the states. I would suggest you hire an experienced financial advisor who can find a way to transfer all of the remaining funds to you.
I was born and raised in California, 4th generation. The 5th generation just moved out of this spoiled state. I’ve been telling everyone for years that in this state watch what you do, if they can’t tax you for it, I guarantee there is a law aginst it, whatever it is your doing. The liberal bleeding heart democrats that play with the states money are freaking out! If the people that are tired of their money being taken from them move out of state, who is going to pay for all the free shit the democrats give the illegal aliens??
I think we need to focus on the politicians who gave themselves a raise (in the begining of the mishandled covid lockdown) let’s take their money and put it back into the general fund, they are all millionaires, they dont need any pay for doing a public service!
Would they seek to subsidize former California residents that were collecting welfare, regardless of their new community? Seems fair right?
ITs fine to ASK for money but its not fine to demand and then believe your messed up tax laws are fair or constitutional for that matter but hey when has that stopped any of this ? A law that can follow them even when they leave ? WOW! .these representatives mindsets are ones of thieves make no mistake this “extra” money they want ….well much will line their pockets no doubt! .You really want fair? Take a collection ask for charitable donations from ALL EQUALLY I bet you end up with far more in the end than your strong arming “great idea” tax law!
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So basically the usual blood suckers.