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California's Wealth Tax Proposal Would Likely Backfire

cpwill

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In New York, Cuomo is so desperate to get wealthy former New Yorkers back that he's resorted to personally calling them and offering to cook for them.

California - famously - is already seeing a bit of an exodus. Will be interesting to watch the collapse if they really ramp it into high gear.


Democratic state legislators have introduced a new Assembly bill that would raise the state income tax on California’s highest earners from the current rate of 13.3 percent to 16.8 percent. This would mean that, after factoring in federal income taxes, California millionaires would face a top tax rate of 53.8 percent... Meanwhile, progressive state legislators have introduced a wealth tax that would fall on Californians with a net worth of $30 million or more.....

In 2012, Californians voted to increase the state income tax for top earners by 3 percent. A recent academic paper researching this tax hike’s impact found that it prompted a greater number of higher earners to leave the state, and that “eroded 45.2 percent of state windfall tax revenues within the first year and 60.9 percent within two years.” This has played out in similar fashion across the country. For example, the state of Maryland passed a so-called millionaires tax in 2008, projecting it would bring in $106 million in new revenue for public services. In actuality, the result was $1 billion of its tax base lost to other states due to out-of-state migration...

In fact, we have reason to believe that right now, the well-off could be more responsive than ever before to increases in taxation. Because of the COVID-19 crisis, many industries have shifted their work force to remote work. In Silicon Valley, for example, tech giants such as Twitter and Facebook plan to allow many employees to work from home on a permanent basis. Why wouldn’t successful software engineers and other high-earners move out of high-tax cities and states, if they are no longer tied there for employment?...
 
The Republican's tax cuts for the rich and corporations has backfired, so as far as backfiring proposals go, I'll take California's, but on a federal level.
 
The Republican's tax cuts for the rich and corporations has backfired, so as far as backfiring proposals go, I'll take California's, but on a federal level.

"Backfire" generally means "you get the opposite of the results you wanted, because you produced this significant unintended consequence".

Cutting taxes on upper incomes was intended to increase the incentive for people to reach those upper incomes. That seems to be working generally okay.

However, this thread was about the stupid, stupid, (and authoritarian) wealth taxes California is considering, and their likely results.
 
WRT california

The California Democrat has already witnessed a mass exodus from his state in recent years, as tax-weary citizens move on to new pastures. The exodus may turn into a stampede if California lawmakers’ latest “soak the rich” legislative push is successful.

Democratic state legislators have introduced a new Assembly bill that would raise the state income tax on California’s highest earners from the current rate of 13.3 percent to 16.8 percent. This would mean that, after factoring in federal income taxes, California millionaires would face a top tax rate of 53.8 percent. The proposal would even apply this tax retroactively, applying the levies to income dating back to January 2020.

Meanwhile, progressive state legislators have introduced a wealth tax that would fall on Californians with a net worth of $30 million or more.

California Wealth Tax Proposal Will Likely Backfire | National Review

as I see things, a big reason democrats want to tax the wealthy is to pay for the mismanagement of the public pension portfolio

Pension Tracker : California Summary

actually as it stands with the "california rule" public pensions are a tax payer liability (IOW the assumption is taxpayers are financial backstop)

What is the California Rule and why does it matter? - NPPC

sad fact of the matter is given all round pension portfolio mismanagement, the USA is essentially insolvent due to unrealistic pension math

WASHINGTON - The Pension Benefit Guaranty Corporation’s Multiemployer Insurance Program continues to face insolvency by the end of fiscal year 2025, according to findings in the FY 2017 Projections Report. The agency’s insurance program for multiemployer pension plans covers over 10 million people.

The new projections show a narrower range of years for the likely date of insolvency of the Multiemployer Program. The likelihood that the Multiemployer Program will run out of money before the end of FY 2025 has grown to over 90 percent, and there remains a significant chance the program will run out of money during FY 2024. The likelihood the program will remain solvent after FY 2026 is now less than 1 percent. The narrower range in the new projections is based on the most recent available data on troubled pension plans.

PBGC’s Single-Employer Program, which covers about 28 million participants, continues to improve and is likely to emerge from deficit sooner than previously anticipated.

PBGC Projections: Multiemployer Program Insolvent in FY 2025 | Pension Benefit Guaranty Corporation
 
Wealth taxes are a ridiculous concept that do little more than destroy "wealth". Those states dilute the purchasing power of dollars to create the illusion of wealth to begin with. "Stimulus" does the same thing. Money is all but worthless. People just haven't figured it out yet. When they do, that "wealth" becomes non-existent.
 
Well, I hate to agree with trumpists, but someone who is for the wealth tax will need to explain how taxing unrealized gains works. I hope you know there is not a big wad of cash in the bank with jeff bezos name on it. Taxing unrealized wealth is a retarded concept. Now increasing capital gains tax I am for.
 
The Republican's tax cuts for the rich and corporations has backfired, so as far as backfiring proposals go, I'll take California's, but on a federal level.
SOBS. :roll:
 
They should move to Alaska. We have no State sales or income taxes. :cool:


You still get that annual stipend from the state?
 
California's Wealth Tax Proposal Would Likely Backfire

It will just lead to more individuals and Companies leaving California...its already an ongoing phenomenon.
 
Unable to distinguish between dividends from investments and government stealing money from others like leftist freaks. Why am I not surprised? This is why you will never amount to anything. You lack the intellectual ability to grasp reality, like all leftists.

Do you cash your government check or is it a direct deposit situation?
 
Do you cash your government check or is it a direct deposit situation?

I don't get government checks. I get dividends from investments. Only leftist parasites rely on the government. Capitalists invest and reap the rewards. Leftists steal money from others. Or are you incapable of comprehending the difference, like your ignorant leftist buddy Bullseye?
 
I don't get government checks. I get dividends from investments. Only leftist parasites rely on the government. Capitalists invest and reap the rewards. Leftists steal money from others. Or are you incapable of comprehending the difference, like your ignorant leftist buddy Bullseye?

Ah, it was right there in the article and I missed it. Could be a check or a direct deposit.

Alaska residents who filed online and chose direct deposit will see their PFD deposited on or shortly after Oct. 3, the state said. Those with paper applications or who chose checks will receive their PFDs starting Oct. 24.
 
I don't get government checks. I get dividends from investments. Only leftist parasites rely on the government. Capitalists invest and reap the rewards. Leftists steal money from others. Or are you incapable of comprehending the difference, like your ignorant leftist buddy Bullseye?

That's a good way to justify wealth distribution.
 
Ah, it was right there in the article and I missed it. Could be a check or a direct deposit.

What part of "Permanent Fund DIVIDEND check" were you unable to grasp? I'm not the least bit surprised that you are having great difficulty comprehending multiple syllable words. This is the level of stupidity I've come to expect from leftists, thanks for not disappointing my expectations.
 
What part of "Permanent Fund DIVIDEND check" were you unable to grasp? I'm not the least bit surprised that you are having great difficulty comprehending multiple syllable words. This is the level of stupidity I've come to expect from leftists, thanks for not disappointing my expectations.

I was just curious about the mechanics of how you get your government check.
 
I don't get government checks. I get dividends from investments.

Uh, we had this exact discussion last week:

LOL, the Fund is funded via revenue from levies place on oil extraction in the form of leases and royalties (read:TAXES). You are participating in a universal income program, it is socialism (the corporation that controls and invests the funds is a STATE OWNED ENTITY) whether you want to admit it or not

You went silent.
 
Sorry, your government "dividend" check. ;)

A word you are still not able to comprehend obviously. Leftist freaks have no clue how to invest and actually earn money. All leftists do is steal money from others. Perhaps that is why you are so confused. The PFD checks is not government theft and you are unable to wrap your uneducated mind around the concept.
 
Uh, we had this exact discussion last week:



You went silent.

I went silent because I'm tired of educating you leftists. You obviously have utterly no clue whatsoever. A common state of mind for leftist scum. Buy a damn dictionary and look up the meaning of "dividend" and get a clue. I'm done trying to educate the terminally stupid.
 
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