“Nor is it at all clear how the state would enforce against the many, many ways that wealthy people would find to avoid the tax.”, Healey’s bottom line was that “it makes no sense for lawmakers to try to solve those problems by enacting a wholly new type of permanent tax with no study and no clue as to its potential unintended consequences.”. AB 2088, the new California “Wealth Tax” bill proposed by Democrat Assemblyman Rob Bonta effectively turns those who wish to escape the high taxes of California into prisoners.. Amid the economic crisis caused by COVID-19 and Gov. Sigh.] “The California Wealth Tax would impose a tax on an extremely limited number of individuals (30,400 billionaires) who hold the highest levels of wealth,” Bonta said. California proposed a .4% annual wealth tax that applies to former residents who already left within the past 10 years, and to current residents for ten years after they leave. Real estate is exempt, as it’s already taxed at a higher rate than the wealth tax. A.B. RICH, GET THE HELL OUT OF CALI BEFORE THIS BILL PASSES. “This isn’t on income they earn, mind you, but on their wealth itself.” According to the bill summary, “AB 2088 establishes a first-in-the-nation net worth tax, setting a 0.4 percent tax rate on all net worth … Bonta said the tax, which impacts those with wealth at over $30 million, would affect about 30,400 people. In times of crisis, all Californians must step up and contribute their fair share. “This isn’t on income they earn, mind you, but on their wealth itself.” According to the bill summary, “AB 2088 establishes a first-in-the-nation net worth tax, setting a 0.4 percent tax … The California Wealth Tax is co-sponsored by the California Federation of Teachers, SEIU California, and the California Teachers Association. “We can’t simply rely on austerity measures,” Bonta told the, The California Teachers Association sent out, Thursday calling on the California legislature to vote on Bonta’s bill as well as, , a tax on households making more than $1 million annually. "The California Wealth Tax would add critically needed revenue for California by creating a more equitable tax structure," Bonta said in a press release promoting the bill. California has recently amended a bill proposing an annual wealth tax of .4% on those individuals worth over $15 million. ✅Includes unrealized gains, start-ups pre-IPO etchttps://t.co/wZ8H6Ok6Zq, — skepticalifornia (@skepticaliblog) August 13, 2020, RELATED: CNN Forced to Make Embarrassing Correction to Capitol Story. It would use a sliding scale based on the number of years a taxpayer lived in the state. The bill won’t come up for a vote before the end of the legislature session on Aug. 31, but Bonta told the Chronicle that he planned to introduce the bill next session. The rate is reduced by 10% for each year of absence. But, hey, if you earned your wealth elsewhere . Kiichiro Sato / AP Mike Huckabee Floats Idea of Impeaching Kamala Harris for Bailing Out BLM Rioters, Mandel Ngan - AFP / Getty Images Red Carpet Send-Off, 21-Gun Salute Among Events Considered for Trump's Departure from DC, Morry Gash - Pool / Getty Images Biden Team Furious After Twitter Refuses to Transfer a Single One of Trump's 33 Million Followers, Ng Han Guan / AP International Investigators Arrive in Wuhan to Get to the Bottom of COVID Outbreak. ©2021 CBS Broadcasting Inc. All Rights Reserved. A group of state lawmakers on Thursday proposed a first-in-the-nation state wealth tax that would hit about 30,400 California residents and raise an estimated $7.5 billion for the general fund. Newsom’s poor decisions, Bonta argues that this new bill will use money from millionaires to support those in financial hardships. The wealthy are in many cases the most mobile members of society, and the less appealing you make your state for them financially, the more likely they are to take their success elsewhere. “It is long past time that California had an equitable tax structure that allows us to provide for all Californians,” Assembly member David Chiu said. “These are individuals who have successfully participated in California’s economy and gained tremendous wealth as a result. California taxpayers may have even more on their plate to worry about besides a ballot initiative increasing property taxes, raising the top state income tax rate to 16.8 percent, and state tax collections this year that have run ahead of projections. The proposed wealth tax is sponsored by the Service Employees International Union California and the California Federation of Teachers, with … https://t.co/qru3UjtnxO, — Senator Melissa Melendez (@senatormelendez) August 15, 2020. Meanwhile, if someone moves to California and is worth more than $30 million, the tax “phases in” in reverse, beginning at 10 percent in the first year. Jack Davis is a freelance writer who joined The Western Journal in July 2015 and chronicled the campaign that saw President Donald Trump elected. “Then there are questions about how to value assets that aren’t on the market, such as a business you own that isn’t listed on the stock market,” he wrote. 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