Current Events > California mulls 'Elon Musk tax' to keep wealthy from bolting to Texas

(+) Yeah! (+)

Silicon Valley billionaires: the grass may not be greener in Texas for much longer. California lawmakers are considering a "wealth tax" that would not only introduce a 1.5% tax on net worth in excess of $1 billion by 2024, but also allow the state to pursue that tax for former residents who flee the state for tax-friendly locations like Florida or Texas.
Alex Lee, a member of the California State Assembly, introduced Assembly Bill 259 and Assembly Constitutional Amendment 3 on January 19. The bill would also lower the threshold for the so-called wealth tax to $50 million by 2026 at a rate of 1%.
It's already proving to be controversial among California lawmakers, like Bay Area Council CEO Jim Wunderman, who told the San Francisco Business Times that the proposed bills sounded "really dangerous and foolish," and that the wealth tax would "only increase Californias dependence on the minute number of people who are bearing the burden of supporting the state's expenditures."
Steve Boultbee, a tax partner at Marcum LLP in San Francisco told the San Francisco Business Times that the goal of the wealth tax seemed to be a way to dissuade Californians from fleeing the state ahead of an IPO or other "liquidity event."
He also drew a parallel to Austin's now most famous resident who fled California for the Lone Star State.
"My first thought is that this could be an 'Elon Musk provision' since he moved to Texas," Boultbee said.

It's a nice sentiment, but 1.5%? Wtf, that's nothing.

It's a nice sentiment, but 1.5%? Wtf, that's nothing.

DO IT

It's a nice sentiment, but 1.5%? Wtf, that's nothing.

And yet the rich are still whining about it

Even more of a reason for companies to not start their businesses in California.

Even more of a reason for companies to not start their businesses in California.

California just being a clingy ex at this point. It's dumb, shouldn't be able to pursue taxes after somebody leaves.

It's dumb. California already has so much money that they are wasting. We need to cut spending.

California just being a clingy ex at this point. It's dumb, shouldn't be able to pursue taxes after somebody leaves.

If Texas can send bounty hunters after people who move out of the state so they can get an abortion or so their kids can be trans, why can't California do this?

What justification is there for taxing non-residents?

Because they're using loop holes for tax evasion

Loop holes aren't illegal, but states trying to retroactively tax non citizens would be unconstitutional. Just accept that this is stupid and will never happen.

Loop holes aren't illegal, but states trying to retroactively tax non citizens would be unconstitutional. Just accept that this is stupid and will never happen.

They can be if its an attempt to commit fraud.

I'm pretty sure Musks legal team that handle his taxes know exactly what they are doing and how to not commit fraud.

Bu abusing loopholes which for something like this should be illegal.

Paying taxes to a state you don't live in is pretty messed up. California having overreach to other states doesn't sound like a good idea.

But it's NOT illegal and that's the point. Whatever loop holes are being used are part of the system that has legally been put into place.

Just because you don't LIKE the way things are doesn't mean you unconstitutionally tax people.

wealth taxes are hecka dumb

"hey if your business is too successful we are going to require you slowly relinquish ownership"

great idea

wealth taxes are hecka dumb

"hey if your business is too successful we are going to require you slowly relinquish ownership"

great idea

What

When you punish success and reward failure, take a guess which one you get more of.

https://gamefaqs.gamespot.com/a/user_image/8/3/9/AABJX0AAEHof.jpg

Loop holes aren't illegal, but states trying to retroactively tax non citizens would be unconstitutional. Just accept that this is stupid and will never happen.

But it's NOT illegal and that's the point. Whatever loop holes are being used are part of the system that has legally been put into place.

Just because you don't LIKE the way things are doesn't mean you unconstitutionally tax people.

anyone suggesting a race to the bottom probably should be thrown out of the window

They're leaving for other states. That's called competition. It turns out when you can't force businesses to stay in one place they find better places for their business. That's not something you can regulate away. At some point, you have to acknowledge creating an environment hostile enough for companies to go elsewhere. That isn't something to double down on. It's a sign that you need to re-evaluate your policies.

They're leaving for other states. That's called competition. It turns out when you can't force businesses to stay in one place they find better places for their business. That's not something you can regulate away. At some point, you have to acknowledge creating an environment hostile enough for companies to go elsewhere. That isn't something to double down on. It's a sign that you need to re-evaluate your policies.

They're leaving for other states. That's called competition. It turns out when you can't force businesses to stay in one place they find better places for their business. That's not something you can regulate away.

Bu abusing loopholes which for something like this should be illegal.