The WSJ article came out on December 18, but my understanding is that bill had already died by that date.
However, economic nonsense never stops.
Deja Vu: Another Wealth Tax Bill Introduced
The California Globe reports Another Wealth Tax Bill Introduced in Assembly.
A new bill was introduced in the Assembly this week that would simultaneously increase corporate taxes, raise income taxes on citizens making over $1 million a year, and eliminate corporate tax “loopholes.”
Assembly Bill 71, jointly authored by Assembly members Luz Rivas (D-Arleta) and David Chiu (D-San Francisco), aims to create a homelessness solutions fund dubbed the “Bring California Home Fund.”
To fund the program with at least $2.4 million, AB 71 would specifically increase the corporate income tax to historical high rates to create a more “progressive” corporate income tax, would increase the personal income tax for anyone in California making more than $1 million, eliminate or limit corporate tax loopholes including the water’s edge election, and would “mark to market” unrealized capital gains and repeal step-up in basis inherited assets, raising the amount generated from capitol gains.
“It’s absolutely crazy,” Los Angeles-based financial consultant Richard Ritz told the Globe. “We’ve been seeing wealthier people leave the state for years because of high taxes, including, most recently, Elon Musk. Especially the Bay Area.”
“A lot of wealthy people had that wealth tax proposal earlier this year as the trigger to move, and now many who stayed after it was defeated are looking at this one for being a trigger.”
“Bring California Home Fund“
What a hoot.
These ridiculous schemes will do nothing but drive the wealthy taxpayers away.
AB 71 is modest in comparison to Bill 2028 but rest assured it would not stop there.
Progressive madness never stops.
A wealth tax may be legal at the state level, but it would never pass a constitutional test in the Supreme Court on those who left.
And yes, the wealthy would leave. So would more corporations.