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California Assembly Bill 259 – Wealth Tax Act

3 points by hnburnsy 4y ago

hnburnsy 4y ago
> This bill would, for taxable years beginning on or after January 1, 2024, and before January 1, 2026, impose an annual tax at a rate of 1.5% of a resident of this state’s worldwide net worth in excess of $1,000,000,000, or in excess of $500,000,000 in the case of a married taxpayer filing separately. The bill would, for taxable years beginning on or after January 1, 2026, impose an annual tax at a rate of 1% of a resident’s worldwide net worth in excess of $50,000,000, or in excess of $25,000,000 in the case of a married taxpayer filing separately. The bill would also impose, for taxable years beginning on or after January 1, 2026, an additional tax at a rate of 0.5% of a resident’s worldwide net worth in excess of $1,000,000,000, or in excess of $500,000,000 in the case of a married taxpayer filing separately. The bill would describe worldwide net worth with reference to specific federal provisions and would provide that worldwide net worth does not include specific assets, including personal property situated out of state, directly held real property, or liabilities related to directly held real property. The bill would also authorize the Franchise Tax Board to adopt regulations to carry out these provisions, including regulations regarding the valuation of certain assets that are not publicly traded. The bill would require new certifications by taxpayers, made under penalty of perjury. By expanding the crime of perjury, this bill would impose a state-mandated local program. > This bill would establish the Wealth Tax Advisory Council. The bill would require the council to determine an adequate level of annual funding and staffing for the administration and collection of the wealth tax imposed by this bill. The bill would provide specific guidelines for what constitutes adequate levels of annual funding and staffing for the administration and collection of a wealth tax. The bill would establish 2 continuously appropriated funds in the State Treasury to cover the expenses of the administration and collection of the wealth tax. Under the bill, the funds would be funded by the greater of either a specified amount or a certain percentage of revenues estimated to be generated by the wealth tax. By establishing new continuously appropriated funds, this bill would make an appropriation.
powerbroker 4y ago
Why would anyone with $1,000,000,000 in wealth be a resident to CA if the cost would b e $10,000,000+ in addition to the 'normal' taxes? Waste of time. Elon Musk is way ahead of you.
- 082349872349872 4y ago
  I am domiciled in a jurisdiction with a general* wealth tax; I view it similar to being a member of a country club: if you want to enjoy the amenities, pay the dues. YMMV * albeit levied per-mille, not per-cent
  - seanmcdirmid 4y ago
    Wealthy people are pretty mobile. If you are rich enough, you can negotiate your taxes directly with a Swiss canton, and Switzerland is a nice enough place to live. Only this doesn’t work for American or Eritrea residents.

3 points by hnburnsy 4y ago

> This bill would, for taxable years beginning on or after January 1, 2024, and before January 1, 2026, impose an annual tax at a rate of 1.5% of a resident of this state’s worldwide net worth in excess of $1,000,000,000, or in excess of $500,000,000 in the case of a married taxpayer filing separately. The bill would, for taxable years beginning on or after January 1, 2026, impose an annual tax at a rate of 1% of a resident’s worldwide net worth in excess of $50,000,000, or in excess of $25,000,000 in the case of a married taxpayer filing separately. The bill would also impose, for taxable years beginning on or after January 1, 2026, an additional tax at a rate of 0.5% of a resident’s worldwide net worth in excess of $1,000,000,000, or in excess of $500,000,000 in the case of a married taxpayer filing separately. The bill would describe worldwide net worth with reference to specific federal provisions and would provide that worldwide net worth does not include specific assets, including personal property situated out of state, directly held real property, or liabilities related to directly held real property. The bill would also authorize the Franchise Tax Board to adopt regulations to carry out these provisions, including regulations regarding the valuation of certain assets that are not publicly traded. The bill would require new certifications by taxpayers, made under penalty of perjury. By expanding the crime of perjury, this bill would impose a state-mandated local program. > This bill would establish the Wealth Tax Advisory Council. The bill would require the council to determine an adequate level of annual funding and staffing for the administration and collection of the wealth tax imposed by this bill. The bill would provide specific guidelines for what constitutes adequate levels of annual funding and staffing for the administration and collection of a wealth tax. The bill would establish 2 continuously appropriated funds in the State Treasury to cover the expenses of the administration and collection of the wealth tax. Under the bill, the funds would be funded by the greater of either a specified amount or a certain percentage of revenues estimated to be generated by the wealth tax. By establishing new continuously appropriated funds, this bill would make an appropriation.

powerbroker 4y ago

Why would anyone with $1,000,000,000 in wealth be a resident to CA if the cost would b e $10,000,000+ in addition to the 'normal' taxes? Waste of time. Elon Musk is way ahead of you.

082349872349872 4y ago
I am domiciled in a jurisdiction with a general* wealth tax; I view it similar to being a member of a country club: if you want to enjoy the amenities, pay the dues. YMMV * albeit levied per-mille, not per-cent
- seanmcdirmid 4y ago
  Wealthy people are pretty mobile. If you are rich enough, you can negotiate your taxes directly with a Swiss canton, and Switzerland is a nice enough place to live. Only this doesn’t work for American or Eritrea residents.