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.
- Update on California Legislative Statistics - May 24, 2021
- Senate and Assembly Leaders Cap Bills Moving Forward in 2021 Session - May 20, 2021
- What is the U.S. Treasury Guidance on Tax Cuts? - May 17, 2021