«The 'Hotel California' Wealth Tax Advances, You Cannot Leave To Escape It
Tyler Durden's Photo
by Tyler Durden
Wednesday, Jan 10, 2024 - 05:45 PM
Authored by Mike Shedlock via MishTalk.com,
The California legislature takes up the wealth tax idea this week. It’s a Hotel California doozie...
California’s Wealth Tax in the Batter’s Box
The Wall Street Journal reports California’s Wealth Tax Arrives. It hasn’t yet, but it’s in the batter’s box.
Democrats introduced the bill last winter, and it will get a hearing Wednesday in the state Assembly as lawmakers scrounge for revenue to fill a projected $68 billion budget hole. Gov. Gavin Newsom on Wednesday will also unveil his budget for the coming year. Democratic legislators are proposing a wealth tax as an alternative to spending restraint.
Wealth Tax Details
The bill would impose an annual excise tax of 1.5% on the worldwide net worth of every full- and part-year California resident that exceeds $1 billion, starting this tax year.
Come Jan. 1, 2026, the state would tax wealth that exceeds $50 million at a rate of 1% each year, with an additional 0.5% tax on assets valued at more than $1 billion.
Part-time residents would be taxed on a pro rata share of their wealth based on the number of days they spend annually in California.
The tax would also apply to nonresidents who have recently left the state.
Democrats exempted real property from the tax as a favor to their high-end real-estate industry and Hollywood donors.
To spread the wealth around to plaintiff-bar donors, the bill would apply the state’s False Claims Act to wealth-tax records and statements. This means plaintiff attorneys could sue affluent individuals on behalf of the state for allegedly under-reporting assets. Plaintiff attorneys would be entitled to a share of the state’s recovery.
Constitutionality
I highly doubt this is constitutional and I am certain that taxing people who don’t live in the state isn’t.
But no one gives a damn about such things anymore.
If this passes, there will be an accelerated exodus from the state. Won’t that be fun.
California Paying for Illegal Migrants to Gender Transition
Meanwhile, please note California Paying for Illegal Migrants to Gender Transition Sparks Fury
Conservatives have reacted with fury after it was reported that illegal migrants in California can be eligible for gender-affirming care from Medi-Cal, the state’s version of Medicaid.
Beginning January 1, all undocumented immigrants in California who meet certain criteria, such as having been resident in the state since 2014 and having income below a certain threshold, automatically qualified for Medi-Cal.
Hard Times: San Francisco Runs Out of Money, Eliminates Slave Reparations Office
On December 18, I noted Hard Times: San Francisco Runs Out of Money, Eliminates Slave Reparations Office
San Francisco wanted to give blacks $5 million each. Instead it eliminated the entire reparations office.
California Has a $68 Billion Budget Deficit
On December 10, I noted California Has a $68 Billion Budget Deficit With Only $30 Billion in Reserves
The boom-bust cycle in California is back to bust again. Governor Newsom faces some tough economic and political choices.
Apparently the no-so-tough choice is to raise taxes even on people who flee the state to avoid them.
If this passes, the Supreme Court will strike it down. Get the hell out of California anyway. Other tax hikes are sure to come.»
https://www.zerohedge.com/political/hotel-california-wealth-tax-advances-you-cannot-leave-escape-it
