Two New California Taxes... Even when you leave the state

California’s tax rate is the highest in the nation and it’s about to get higher. As millions of people are fleeing california, the state is working hard to increase existing taxes as well as create new types of taxes on those who are left behind. The goal of the new taxes is to tax high net worth individuals on a percent of their global wealth as well as create an exit tax that will follow them even if they decide to leave.

In this video we will examine these new measures and what impact they will have on California’s already struggling economy. Please help me reach more people with this by hitting the “like” button below, which will help push this video to more people that need to see it.

In the Eagles hit song “Hotel California” one of the lines in the song seemed to have foretold the future of California. It went “You can check out any time you like, but you can never leave.” This seems very fitting now as California is rushing to enact an exit tax which will track California residents that are fleeing the state to continue paying taxes for a whole decade after they leave the state.

The second tax, the “wealth tax” would tax Californians based on their worldwide net worth.

This would likely have a severely detrimental effect on California’s already top-heavy tax base. The top 1 percent of income earners currently pay about HALF of California’s income tax collections, and California’s tax system is already considered the most progressive in the nation.

Many California taxpayers seem to be getting sick of shouldering this burden — the most recent IRS migration data shows that, on net, over 60,000 Californians moved out of the state between 2017 and 2018, resulting in a net loss of $8 billion in adjusted gross income. Between 2010 and 2018, the state’s tax base shrank by nearby 25 billion dollars.

The wealth tax in combination with the exit tax would ensure that no one escapes California’s loving embrace.

The reason these taxes are controversial is because history shows that they tend to backfire spectacularly.

Some people suggest that adding a ‘wealth tax’ on the billionaires of the world might solve all our inequality issues. However in practise, this might be extremely difficult. For one, while taxing income is easy, if you earn a dollar, some % of that dollar has to be paid back in taxes, calculating wealth can be much more difficult. If you tax stocks and real estate, people may buy gold and precious metals, if you tax those they may buy sailboats, supercars and art.

If you begin taxing collectors items, you have to establish a value for those items. How much is a painting worth? Does that price change if the artist dies? Is it worth more 5 years from now or less?

All these questions are hard to answer and would require an army of people to keep track of wealthy people’s large collections of assets. Also, now with worldwide mobility being easier than ever, how do you tax wealth that is stored abroad?

France has had a wealth tax for a long time, from the 1980s to 2017, it taxed millionaires 1% to 2% percent of their total wealth. During that time it also introduced a “supertax” that would tax incomes of more than one million euros 75%.

It was assumed that such progressive measures would greatly decrease inequality and get more revenues to the French government to use for various social programs.

Видео Two New California Taxes... Even when you leave the state канала Wes Roth