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> And this is why is California is trying to get a 10 year exit tax on your income. Context: For net worth over 30 million Leaving this out is disingenuous

refurb 4y ago
It's the camel's nose in the tent. Once it starts, it's not hard to change later and soon you find out you're rich! https://moskowitzllp.com/californias-exit-tax-explained/ https://moskowitzllp.com/californias-exit-tax-explained/ It's basically a wealth tax of 0.4% on assets above $30M, worldwide. If you leave the state - pay all the taxes due, you are still responsible to pay that wealth tax for 10 years. No distinction is made for assets acquired prior to moving to California. You could acquire wealth prior to moving to California, then as soon as you're a resident you have to pay it, and for 10 years after you leave. What's going to happen is that people with that kind of wealth just won't move to California and people who might have that kind of wealth will make sure they leave before they trigger it. It's a terrible law. Reminds me of places like New Jersey which did an amazing job chasing all their high-net worth people out of the state.
- trieste92 4y ago
  I'm fine with an 100% wealth tax for anything over 30 million applied at a federal level > What's going to happen is that people with that kind of wealth just won't move to California Even more of a reason to introduce it on a federal level
  - refurb 4y ago
    But it won't be $30M for long. It's be $20M, then $10M, then $5M including your house. And wealth taxes have failed miserably everywhere they've been tried. France instituted one a few years back and it failed to capture even a small percentage of expected revenue - people just do whatever they can to avoid it, including leaving the country.
    - red-iron-pine 4y ago
      This is a lame slippery slope argument. $30MM dollars as net worth is well above the vast, vast majority of Californians, even those in STEM, acting, or other fields. Most of the fearmongering is also pretty lame, for the same reasons -- "soon it will be the 5-millionaires!" -- which is, again, far removed from the average Californian, even the average STEM worker in Cali outside of mid-to-high level FAANG types.
      - refurb 4y ago
        You realize some European countries have wealth taxes for everyone, right?

refurb 4y ago

It's the camel's nose in the tent. Once it starts, it's not hard to change later and soon you find out you're rich! https://moskowitzllp.com/californias-exit-tax-explained/ https://moskowitzllp.com/californias-exit-tax-explained/ It's basically a wealth tax of 0.4% on assets above $30M, worldwide. If you leave the state - pay all the taxes due, you are still responsible to pay that wealth tax for 10 years. No distinction is made for assets acquired prior to moving to California. You could acquire wealth prior to moving to California, then as soon as you're a resident you have to pay it, and for 10 years after you leave. What's going to happen is that people with that kind of wealth just won't move to California and people who might have that kind of wealth will make sure they leave before they trigger it. It's a terrible law. Reminds me of places like New Jersey which did an amazing job chasing all their high-net worth people out of the state.

trieste92 4y ago
I'm fine with an 100% wealth tax for anything over 30 million applied at a federal level > What's going to happen is that people with that kind of wealth just won't move to California Even more of a reason to introduce it on a federal level
- refurb 4y ago
  But it won't be $30M for long. It's be $20M, then $10M, then $5M including your house. And wealth taxes have failed miserably everywhere they've been tried. France instituted one a few years back and it failed to capture even a small percentage of expected revenue - people just do whatever they can to avoid it, including leaving the country.
  - red-iron-pine 4y ago
    This is a lame slippery slope argument. $30MM dollars as net worth is well above the vast, vast majority of Californians, even those in STEM, acting, or other fields. Most of the fearmongering is also pretty lame, for the same reasons -- "soon it will be the 5-millionaires!" -- which is, again, far removed from the average Californian, even the average STEM worker in Cali outside of mid-to-high level FAANG types.
    - refurb 4y ago
      You realize some European countries have wealth taxes for everyone, right?