Assemblyman Miguel Santiago at press conference in Los Angeles. (Photo: Evan Symon for California Globe)
Millionaire’s Tax Bill Would Create Additional Tax on CA Millionaires
AB 1253 to tax additional 1% for income over $1 million, 3% over $2 million, 3.5% over $5 million
By Chris Micheli, March 26, 2021 7:29 am
On March 24, Assembly Members Miguel Santiago, Lorena Gonzalez, Ash Kalra, Alex Lee, Wendy Carrillo, Reggie Jones-Sawyer, and Buffy Wicks amended Assembly Bill 1253 to create an additional tax on millionaires. The bill would add Section 17044 to the Revenue and Taxation Code.
Section One of the bill would add Section 17044 to provide that, for each taxable year beginning on or after January 1, 2021 an additional tax as follows:
- 1% for income over $1 million, but not over $2 million
- 3% for income over $2 million, but not over $5 million
- 3.5% for income over $5 million
The bill would also provide that this additional tax applies without adjustments to the income thresholds in the law for the filing status of taxpayers. The income thresholds listed above are to be recomputed for each taxable year beginning on or after January 1, 2022. The bill provides definitions of adjusted income thresholds listed above.
As a tax levy, the measure would take effect upon chaptering. The bill would require a 2/3 vote of both houses of the Legislature. This bill is likely to be heard in the policy committee in April.
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Ever wonder why they call this state Taxifornia?
Ever wonder why people are fleeing Korruptifornia in record numbers?
Isn’t it comforting that the progressive legislatures are looking out for us all. ???? They want to fatten their piggy bank during a crisis that they created by shutting most businesses down for a year.
Keep in mind, those taxes get passed along to most everyone through purchased products, rent and personal services. It’s always fun to stick it to the “rich guy”!
Just look what is happening to the grocery stores who are forced to pay their employees higher wages, some have closed shop which equates to job loss and the consumer pays higher prices for food! It ends up hurting us all but enriching inept state programs. EDD and train to no where?
Why in the world would job providers and retirees stay here?
When those high earners are gone, who will be here to tax?
@One Fed Up Cali Girl, this is the year I hope to explore a state outside of California. This additional proposed tax if approved may convince my wife to agree that life in another state would be a life enhancing experience. As you said, tax increases are in our future.
@Owednothing, Good luck with that.
Some of us are very rooted here from birth, unfortunately the powers that be are doing everything in their power to make California inhabitable. I understand your plight.
Millionaires especially those in Hollywood celebs will work it so they have homes outside of CA and put into contracts they are paid outside of CA though their all their LLC they have to avert paying taxes
Assembly Members Miguel Santiago, Lorena Gonzalez, Ash Kalra, Alex Lee, Wendy Carrillo, Reggie Jones-Sawyer, and Buffy Wicks? All members of the communist Democrat party which has made a complete mess of this once great state.
Deplorable’s
The Publicans are on a roll….now watch the the ghosting of assets and local future investments,, the coming brain drain, charitable giving drying up, general modicum of societal balance in agony and slithering towards kaput…
Millions of the slowly cooking middle class frogs have no idea……they just hafta be next-
Sounds like they are running out of middle class people to tax.