California lawmaker wants to tax departing wealthy for 10 years after they move out of state

California lawmaker wants to tax departing wealthy for 10 years after they move out of state
Let my people go. Monarch, the last California Golden Bear in captivity, in photo ca. 1900. UC Berkeley, Bancroft Library

[Ed. – If I recall correctly, New York has had some version of this.  It wasn’t a wealth tax, per se, but it was about continuing to collect on the putative profit value gained from doing business as a citizen of New York.  Don’t know how the California proposal would stand up to a legal challenge.  Sigh.]

Fox Business Network anchor Neil Cavuto questioned California State Assemblyman Rob Bonta on “Cavuto: Coast to Coast” Friday over his proposal to institute a 0.4% wealth tax on Golden State residents worth more than $30 million.

The Alameda Democrat told Cavuto the proposed tax “affects about 0.15% of the California population — not the top 10%, not the top 1%, the top .15%, about 30,000 people” and would generate $7.5 billion in revenue for the state. …

Bonta added that his proposal would apply a “phased-in approach” to make sure Sacramento recoups its share of the income of a California resident who leaves the state.

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“If you move in Year One, 90% of the tax bill applies…” he said, adding that the following year it drops to 80% and so on until it is phased out to zero.

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