Greenberg Glusker Client Alert By Stefanie J. Lipson. California has recently amended a bill proposing an annual wealth tax of .4% on those individuals worth over $15 million. Bonte claimed they accrued the wealth in California. “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.”. The Democrats’ most recent plan would levy a 0. Between 2010 and 2018, the state’s tax base shrank by $24.6 billion. The new threat: a first-in-the-nation combination wealth tax and exit tax. The rate is reduced by 10% for each year of absence. Healey argued that the tax was a bad idea because there are huge uncertainties about how it would work. The bill, AB 2088, will tax .4% of a resident’s net worth if it exceeds $30 million for single and joint tax form filers, and $15 million for married couples filing separately. But, hey, if you earned your wealth elsewhere . The proposed wealth tax is sponsored by the Service Employees International Union California and the California Federation of Teachers, with … Jon Healey, the deputy editorial page editor of the Los Angeles Times, cast a jaundiced eye upon the proposal in an Op-Ed in which he noted that “the tax would also be imposed on former residents who left within the past decade, presumably to catch those who fled the state’s income tax rates, which already are the highest in the country.”. “It also would apply the highest wealth-tax rate to anyone who’d spent a decade or more in California, a bizarre choice that would only increase the incentive for longtime residents to move out,” he wrote. Other Democratic supporters of the bill said it was simply a matter of fairness. Bonta said the tax, which impacts those with wealth at over $30 million, would affect about 30,400 people. Assembly Bill 2088 will assess a wealth tax annually for a 10-year shadow period and extend to residents, ... but any amount of net-worth wealth tax on those assets paid to another jurisdiction shall be credited against the Wealth Tax. SACRAMENTO (CBS SF) — A bill proposed in the California State Assembly would, if passed, implement a wealth tax on California residents — the first of its kind in the nation. 2088, as amended on August 13 by 12 Assembly members and 2 Senators, would impose a 0.40 percent annual tax on a taxpayer’s worldwide wealth above $30 million, not counting real estate, based on market value at the end of each calendar year. Written by Julianne Foster. On August 13, 2020 in the Assembly: From committee chair, with author's amendments: Amend, and re-refer to Com. “Families are hurting right now,” he said. The combined federal-California top marginal tax rate would rise to 53.8% on wage income and 40.6% on capital gains. Existing law imposes taxes upon income and real property, as well as taxes upon certain transactions and excise taxes. “These are individuals who have successfully participated in California’s economy and gained tremendous wealth as a result. “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. “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. The Democrats’ proposal for “an annual tax of 0.4 percent upon the worldwide net worth of every resident in this state,” according to the t ext of AB 2088 , which would create the tax on a vast list of untaxed assets California wants to tax. The wealth tax bill is also structured in such a way CA wealthy residents who leave still have to pay the extreme wealth tax on a fraction of their wealth for up to 10 years: they pay tax on 90% of their wealth the year after they leave, on 80% 2 years after they’ve left, .. , on 10% 9 years after they’ve left, 0% 10 years or more after they’ve left. 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. Even if you move, this new bill would continue to tax you in your new state for 10 years. RICH, GET THE HELL OUT OF CALI BEFORE THIS BILL PASSES. Fox Business Network anchor Neil Cavuto questioned California State Assemblyman Rob Bonta on “Cavuto: Coast to Coast” Friday over his proposal to institute a 0.4% wealth tax on Golden State residents worth more than $30 million. 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.