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Last post 15 months ago by Sunoverbeach. 10 replies replies.
Get Back...To Where You Once Belonged
DrMaddVibe Offline
#1 Posted:
Joined: 10-21-2000
Posts: 55,301
Get back JoJo...

Welcome To Hotel California: Lawmakers Move To Tax People Who Have Left The State



California lawmakers appear intent on making the Eagles song Hotel California a reality … at least when it comes to taxes for those who try to flee the state. At the Hotel California, “you can check-out any time you like, but you can never leave!”

With soaring costs and a massive $24 billion deficit, the state is also facing an exodus of people leaving the state.

The solution?

Convert the state into a tax Venus flytrap: not only impose a wealth tax on those caught in the state but tax those who try to leave.

The new bill introduced by Democratic Assemblyman Alex Lee would impose an extra annual 1.5% tax on those with a “worldwide net worth” above $1 billion, starting as early as January 2024.

The law has a cynical bait-and-switch provision. The billionaire tax is just meant for the initial packaging and passage. It can therefore be sold as a “billionaire’s tax.” However, in two years, the threshold drops to a worldwide net worth exceeding $50 million. While billionaires would stay at 1.5%, those in the lower tax bracket would be hit by a 1% added rate on worldwide assets.

It also includes the taxation on those who left the state . . . many due to the high taxes. California already has the highest tax burden in the nation. It relies on its top 1% of taxpayers for roughly half of its individual income tax revenue, but continually treats those taxpayers like game in a canned hunt. The result, not surprisingly, is that they are leaving for states like Texas and Florida.

The new tax would arrange for payments to California’s Franchise Tax Board for years after a departure for those assets which are not easily converted into cash.

I have previously written how the wealth tax pushed by Democrats like Sen. Elizabeth Warren are unconstitutional under the federal Constitution.

States are not subject to the same limit. Not surprisingly, the highest taxing states are pursuing the most wealthy . . . who are leaving in droves. That includes Connecticut, Hawaii, Illinois, Maryland, Minnesota, New York and Washington.

What is most striking under the proposed law is that it will not only spur more wealthy couples to leave the state but discourage any from moving into the state. Even if this ill-considered law does not pass, who wants to risk going to a state that is actively pursuing new ways to tax you even if you ever decide to leave? With many in the top one percent getting out of the state, the tax demand on the most wealthy is only likely to increase with the dwindling numbers in the top tax brackets. No one wants to be the last buffalo on the plains for the California tax collectors.

Under the existing exit tax, businesses and individuals must pay a one-time tax to leave based on the value of the business or individual’s assets, including property, stocks, and other investments. For those who have earned more than $30 million, you can continue to pay for years after fleeing the state. The current exit tax is 0.4% of an individuals’ net worth over $30,000,000 in a tax year, including assets located outside of California other than real estate.

Taxing wealth is no easy matter so the proposal seeks $660 million per year for administrative costs.

California is also considering constitutional amendments and referendums to increase taxes for the most wealthy.

Last thing I remember, I was
Running for the door
I had to find the passage back
To the place I was before
“Relax, ” said the night man
“We are programmed to receive
You can check out any time you like
But you can never leave”


https://www.zerohedge.com/personal-finance/welcome-hotel-california-lawmakers-move-tax-people-who-have-left-state


"Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore. Send these, the homeless, tempest-tost to me, I lift my lamp beside the golden door!" I think they left off the "And Run for your lives" part. I could be wrong.
DrafterX Offline
#2 Posted:
Joined: 10-18-2005
Posts: 98,508
Those Bassards..!! Mad
BuckyB93 Offline
#3 Posted:
Joined: 07-16-2004
Posts: 14,111
They are just kidding.
HockeyDad Offline
#4 Posted:
Joined: 09-20-2000
Posts: 46,065
They’ve tried passing a similar tax before. It will start as a billionaire tax and eventually be for everyone.
MACS Offline
#5 Posted:
Joined: 02-26-2004
Posts: 79,593
Well, I ain't got even a million in assets and I already left... so I think I am safe.

We'll see when I do my CA state taxes one last time this year. Think
ZRX1200 Offline
#6 Posted:
Joined: 07-08-2007
Posts: 60,476
Remember to lube heavily MACS.
MACS Offline
#7 Posted:
Joined: 02-26-2004
Posts: 79,593
ZRX1200 wrote:
Remember to lube heavily MACS.


I'm used to it after 15 years of it... like throwin' a hot dog down a hallway by now. Anxious

First 15 years I was still in the Navy and did not claim CA as my state. Angel
Mr. Jones Offline
#8 Posted:
Joined: 06-12-2005
Posts: 19,359
Macs....

No way you or hockeydad will escape this TAX...

YOULL BOTH GET NAILED BIG-TIME FOF BOOO-KOOOO $$$

NO GRANDFATHERING FOR YOU TWO SORRY BASTIDS...

IT WILL BE RETROACTIVE TO 2020 OR 2019 FO' SHO' !!

GUUUAAAARRRREEEENNNTEEEED !!!
HockeyDad Offline
#9 Posted:
Joined: 09-20-2000
Posts: 46,065
I’m gone. All assets moved out of Cali.

I am a ghost.
Sunoverbeach Offline
#10 Posted:
Joined: 08-11-2017
Posts: 14,586
How exactly would you enforce a tax on a non-resident? Strongly worded letter?
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