California Wealth Tax Coming Soon
The state of California is in trouble. As many in Idaho can attest, people are fleeing California at a record rate.California was at one time the dream place for every American to live. Now rolling blackouts, massive state deficits, and rising crime are just a few of the many reasons people are giving the once Golden State the boot.
Now the crony politicians are fighting back. You can leave California, but you must continue to pay taxes to California. California Globe is reporting that a state representative is proposing a wealth tax that will follow you when you leave the California.
From the Globe: " Knowing about the huge outbound migration from California, Cavuto asked what would happen to wealthy people who move out of state. Bonta said tax “avoidance” would not be allowed as California would tax them for the next ten years, despite what state they live in. Bonta said that because they accrued the wealth in California, the state can continue to legally tax it.
“Tax avoidance,” with the primary purpose of reducing the valuation of a taxpayer’s worldwide net worth is required to be disregarded.
Is this proposal constitutional? Stay tuned true believers.